Do you send money to Nigeria? As an expatriate or family of an expatriate, this article is going to help you understand the new monetary policy for remittance to Nigeria, and we must be able to respond quickly to rapidly changing circumstances throughout the world.
As a result, after the Central Bank of Nigeria (CBN) issued a new guideline regarding how money can be received in the country, money transfer companies worked hard to immediately adjust their services to the changes. Ace money transfer was the first digital service in Nigeria to allow consumers to receive their cash in USD while receiving transfers from abroad, thanks to our agility.
The Central Bank of Nigeria (CBN) has announced new policy measures for money transfer to Nigeria, known as remittance, that would affect money remitted home by Nigerians living abroad. These new laws for sending money from the United Kingdom to Nigeria went into force immediately.
The CBN issued further operational guidelines after a few operators continued to pay remittances in local currency to violate the new regulations.
All local currency (Naira) transfers in respect of foreign remittances through IMTOs should be stopped immediately by switches and processors.
All MMOs are obligated to disable wallets from receiving payments from IMTOs immediately.
Payment service providers have been told to stop linking their systems with IMTOs and keep remittances separate from other authorized transactions.
What Are The Aims Of New Monitory Policy Measures By The Government Of Nigeria?
Nigerian banks will begin paying out dollars for diasporas who send money to Nigeria online or offline and shutter naira remittance accounts, the central bank said recently after the regulator simplified money transfer regulations to increase currency liquidity in the country.
The naira has been under pressure due to rising dollar demand. After COVID-19 sparked an oil price fall, importers with responsibilities sought hard cash, while foreign exchange suppliers, such as offshore investors, withdrew. Nigeria is seeking to increase remittances from its diaspora after the central bank eased restrictions that had hampered inflows on Monday.
The reforms, it stated, will assist in eliminating arbitrage, in which money transfer companies profit through illegitimate methods. Since last month, the naira has depreciated dramatically on the underground market. It traded at a three-and-a-half-year low of 500 nairas to the dollar on Monday, extending the spread between the official market and the black market, where the currency has been stuck at 381 since July.
In recent days, the central bank met with commercial banks and money transfer companies to discuss the measures expected to enhance Nigeria’s balance of online money transfers to Nigeria and lessen its reliance on foreign borrowing.