Nigerians Abroad Can No Longer Send Money Home in USD, IMTOs To Convert In Naira, Give Exchange Rate
- Just like banks, IMTOs have started implementing CBN's new requirements for international money transfer
- The IMTO has updated their features for Nigerians residing abroad who wish to remit foreign currency back home
- Based on the new rule, Nigerian senders are now only allowed to transfer the equivalent amount in naira
Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.
International money transfer operators will no longer allow Nigerians abroad to send money home in foreign currency.
This is in obedience to the Central Bank of Nigeria's revised guidelines on international money transfer operations.
Source: Getty Images
The CBN instructed that banks begin paying dollars and other foreign currency payouts from abroad in naira to boost forex supply.
Read also
CBN sends message to Access, Zenith, UBA, others on ‘new’ dollar rates as IMTOs take action
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Part of the CBN guideline reads:
"All inbound money transfers to Nigeria shall be paid to beneficiaries in Naira through a bank account, or cash.
"Proceeds of IMTO more than the equivalent of $200 shall be paid through an account. Cash payments shall be made upon the provision of a satisfactory/acceptable means of identification.
“Where the beneficiary does not have an account with the IMTO agent bank, the agent bank shall credit the beneficiary account in another bank.
The exchange rate for the naira payment shall be at the prevailing rate in the Nigerian Foreign Exchange Market.
IMTOs begin implementation
IMTOs are CBN-authorised companies or organisations that facilitate fund transfers from individuals or entities residing abroad to recipients in Nigeria.
These operators help individuals to send money to their families, friends, or business partners in Nigeria.
Over 40 authorised IMTOs operate in Nigeria, including major international money transfer companies such as Western Union, MoneyGram, PayPalRia Financial, TransferWise, WorldRemit and others.
One of the approved IMTOs, World Remit, has updated its app for Nigeria with the following instructions:
"WorldRemit Nigeria News! We can no longer support transfers in USD; only in Naira.
"If you're about to send money to Nigeria, this is important. The Central Bank of Nigeria (CBN) has directed that it's no longer possible for any money transfers to be paid out in USD in Nigeria. So, of course, this includes WorldRemit money transfers.
"However, you can still send Naira transfers instead. "We will make it easier, our currenct exchange rate is N1,450 to $1
"If you have any questions or concerns, our dedicated support team is always here to help. Thank you for sending money with WorldRemit and for your understanding."
Expert speaks
Reacting to the development in a chat with Legit.ng, Tunde Afolayan financial analysts described CBN's decision as a good move.
He noted that this will boost supply in the official market and help ease pressure on Nigerian currency.
His words:
"In 2022, Nigeria received $20.13 billion in personal diaspora remittances, and it has been increasing every year. However, sadly, a large percentage of these funds find their way into the black market because of the huge disparity between the official and black market rates.
"I believe the decision of the CBN will help close this gap and also provide Nigeria with the needed dollar liquidity to support the naira"
CBN, FG not converting domiciliary accounts
Meanwhile, the Nigerian government and the Central Bank of Nigeria have responded to reports suggesting plans by the government to convert funds in domiciliary accounts to naira.
Over $30 billion is reported to be sitting idle in accounts across Nigerian banks, including Access, GTB, UBA, Zenith, and others.
The report claims the move will help the naira recover in the forex market and boost forex supply in Nigeria.
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Source: Legit.ng
