CBN Announces Indefinite Extension Of ‘Naira4dollar’ Scheme

FX - Naira4dollar exchange rates

The Central Bank of Nigeria has announced the indefinite extension of its ‘Naira4dollar’ scheme, few months after it was first introduced.

According to a notice titled ‘’Re: Introduction of the CBN’s Naira4Dollar Scheme for diaspora remittances’’, the apex bank informed all deposit money banks, international money transfer operators and general public of the continuation of the scheme which was originally scheduled to end on 8th of May, 2021.

The notice by the apex bank read: ‘’Further to the CBN Circular referenced TED/FEM/PUB/FPC/01/003 fated 05 March 2021 on the above subject matter, which was originally scheduled to end on 08 May 2021, we hereby announce the continuation of the scheme until further notice.

‘’All aspects of the operationalization of the programme remain the same. Please take note and ensure compliance.’’

READ: Central Bank Of Nigeria (CBN)- Invitation To Tender For Nigerian Treasury Bills (May 2021)

Recall that the Central Bank of Nigeria in an earlier circular dated 5th of March, 2021 had introduced the Naira4dollar scheme which sought to incentivize and sustain the increasing inflow of diaspora remittances into the country. As reported by NaijaBusiness.com.ng, the scheme announced that all recipients of diaspora remittances through CBN licensed International Money Transfer Operators (IMTOs) will be paid N5 for every $1 received as remittance inflow.

Analysts at Naijabusiness.com.ng understand that the recent announcement is a big boost in sustaining liquidity in the Nigerian foreign exchange market, as monetary authorities take proactive measures in warding off negative economic impacts caused by the COVID-19 pandemic. Prior to the recent policy, some of the measures taken by the apex bank to boost liquidity in the forex market include but not limited to; placing 41 items under the forex ban in a bid to conserve foreign exchange, restriction of OMO bills for FPIs, and an earlier order to IMTOs to discontinue the practice of not remitting dollars into the country but keeping it overseas and sending Naira.