It is no longer news that the Central Bank of Nigeria (CBN) has started the Naira 4 Dollar policy. But what is the policy about?
The policy has made banks to start wooing customers ahead of the policy which commenced today.
CBN Governor, Godwin Emefiele, had on Saturday announced the introduction of an incentive of N5 for every $1 of fund remitted to Nigeria through International Money Transfer Organisations in the bank’s new forex policy.
According to him, it was part of CBN’s reforms to boost the inflow of foreign currency into the country, adding that the N5 for every $1 fund remitted to Nigeria.
This policy means made Deposit Money Banks reached out to their customers on Sunday telling them that N5 would be given for every dollar received by the customers.
Guarantee Trust Bank, for instance, sent out text messages to its customers on Sunday concerning the new development. It said, “Dear Customer, we are giving you N5 for every dollar you receive via money transfer agents. Offer available at all GTBank branches nationwide and valid till 8th of May.”
The N5 rebate would be given when the remitted fund to Nigeria moved through International Money Transfer Organisations.
This is an effort made to reduce the cost burden of remitting funds to Nigeria by working Nigerians in the diaspora. The CBN introduced a rebate of N5 for every $1 of fund remitted to Nigeria, through IMTOs licensed by the central bank.
This policy might bring about an increment in the country’s foreign remittances to $34.89bn by 2023.
Forecast by PricewaterhouseCoopers, one of the big four accounting firms, had suggested that Nigeria’s remittance flows could reach $34.89bn by 2023 if the policies were right.