CBN okays dollar collection for diaspora remittances

The Central Bank of Nigeria (CBN) says beneficiaries of diaspora remittances through the international monetary transfer operators (IMTO) can now receive their funds in foreign currency (US dollar).

It said the amended procedures for receiving such remittances was part of its efforts to boost the foreign exchange market.

It said this in a statement on Monday signed by its Director of Trade and Exchange, O.S. Nnaji, stressing that recipients of such remittances could have the option of receiving such funds in the foreign currency cash or into their domiciliary account.

The statement read in part, “These changes are necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of Diaspora remittances into Nigeria.

“In addition, these changes would help finance a future stream of investment opportunities for Nigerians in the Diaspora, while also guaranteeing that recipients would receive a market reflective exchange rate for the market.”

The CBN also noted that beneficiaries would have unfettered access and utilisation to such foreign currency proceeds, either in cash and or in their domiciliary accounts.

Under the new guidelines, operators of export domiciliary accounts would continue to operate based on existing regulations allowing account holders to use their funds for business operations only with any extra funds sold in the import and export window, the CBN stated.

Also operators of ordinary domiciliary accounts where accounts are funded electronically or wire transfer, will be allowed unfettered and unrestricted use of these funds for eligible transactions.

And where accounts are funded by cash lodgments, existing regulation will continue to apply, according to the apex bank.