One reliable way to determine a country’s economic strength is by measuring the number of remittances the country receives. This metric provides a great perspective on the wealth of any nation.
Usually, when people leave their home countries for another country, either temporarily or for relocation purposes, they still have to send money back home. They have to send money to family and friends, business partners, and so on. Remittance is the sum total of all the money diasporan citizens send back home.
In the past, diasporan Nigerian citizens could send money back home in the currency of their destination. However, the Central Bank of Nigeria on the 31st of January issued a revised guideline that halted the receipt of foreign currency from friends and family abroad. The new policy is that all remittances into the country should be in Naira only.
This post includes details of the recently released remittances guidelines by the Central Bank of Nigeria. Let’s get into it.
CBN’s Revised Guidelines on Inbound Money Transfers
Banks and international money transfer services have stopped paying dollars to their customers. Likewise, some banks informed their customers that they would no longer be able to receive foreign currency deposits.
This followed the revised guidelines for international money transfers that the Central Bank of Nigeria released on the 31st of January.
The CBN, in its revised guidelines stipulated that “All inbound money transfers to Nigeria shall be paid to beneficiaries in Naira through a bank account, or cash”
“Proceeds of International Money Transfer Operators (IMTOs) greater than the equivalent of $200 shall be paid through an account. Cash payments less than $200 shall be made upon the provision of a satisfactory means of identification. The acceptable means of identification are any of the following: international passport, Driver’s license, National identity card, and INEC Permanent Voters Card. ” Where the beneficiary does not have an account with the IMTO agent bank, the agent bank shall credit the beneficiary account to another bank.”
The Central Bank will also not give new IMTO licenses to fintech startups. However, the central bank did not state how this policy affects fintech companies that already have permission to transfer funds internationally.
The Significance of The New Policy
The reason for this guideline by the CBN is to discourage further currency substitution in the country. Usually, diasporan remittances cater to personal needs and expenses rather than to develop the country. So, it is only mandatory for the CBN to secure all streams of income in the country. This includes limiting the amount of foreign currency that goes in and out of the country. The CBN believes that by doing so, they’ll be able to increase naira liquidity in the official window.
What This Means for Changera
In compliance with the revised guideline, Changera must update its app to support transfers only in Naira. If you want to send money to or from Nigeria, you’ll have to send and receive only the Naira equivalent.
However, don’t fret. You’ll still enjoy the same quick, safe, and secure Changera service by sending money in Naira instead.
Also, don’t forget that you can recharge airtime and data and pay all your bills conveniently on the mobile app.
Update your app on the Google Play Store or App Store to continue enjoying the Changera benefit today.
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