Banks Implement CBN Naira for Dollar Promo
By Aduragbemi Omiyale
The implementation of the new foreign exchange policy introduced by the Central Bank of Nigeria (CBN) over the weekend has commenced.
On Saturday, the CBN announced that it would give N5 for every $1 sent to beneficiaries in Nigeria through any of the accredited International Money Transfer Operators (IMTOs).
The move, under what is called the CBN Naira 4 Dollar Scheme, is expected to last for two months from March 8 to May 8, 2021.
Some analysts have said the FX policy was introduced by the central bank to increase the flow of Dollars into the country, arguing that the country was experiencing a shortage in FX.
Recently, the CBN silently devalued the Naira at the Investors and Exporters (I&E) window of the forex market to N410/$1 from N395/$1 as the Dollar squeeze persists.
To address this issue, the CBN came up with the new policy it explained would enable “all recipients of diaspora remittances through CBN licensed IMTOs [to] be paid N5 for every $1 received as remittances inflow.”
It further said it was to make it possible for Nigeria to tap into the booming remittances industry as a forecast by PwC suggests that Nigeria’s remittance flows could reach $34.89 billion by 2023.
The apex bank had noted that to achieve this, “remittance infrastructure” must be improved and “the right policies” put in place, adding that “Nigeria aspires to ensure that remittance flows and diaspora investments become a significant source of external financing.”
The CBN expressed optimism that the rebate of N5 for every $1 of fund remitted to Nigeria “will help to make the process of sending remittance through formal bank channels cheaper and more convenient for Nigerians in the diaspora.”
Business Post observed that commercial banks operating in the country have already started the implementation of the new FX policy of its regulator.
GTBank, one of the tier-one lenders in the country, sent a notice to its customers over the weekend to inform them of the development.
“For every Dollar sent to you from anywhere in the world via money transfer agents, you’ll receive N5 more into your GTBank account or over the counter at any GTBank branch nationwide,” the notice seen by Business Post read.
On its part, Fidelity Bank said, “For every Dollar you receive via any of our IMTOs, you get N5 cashback, either into your Fidelity account or over the counter.”
“Receive money sent from friends and family living abroad at any UBA branch nationwide and get an instant cash reward.
“UBA will give an extra N5.00 for every $1.00 received. For example, if you receive $1000 at UBA, you get an extra N5,000,” the notice from UBA said.
Several other financial institutions have also informed their customers of the new policy and have urged them to benefit from it.