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Central Bank of Nigeria Restricts Foreign Currency Transfers to Naira Only

by Vicky Oselumese
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Central Bank of Nigeria Restricts Foreign Currency Transfers to Naira Only

The Central Bank of Nigeria (CBN) has implemented a directive that prohibits international money transfer operators (IMTOs) from paying Nigerians in foreign currencies.

As a result, Nigerians living abroad will no longer be able to send dollars or other foreign currencies directly into bank accounts in Nigeria.

This move is in line with the CBN’s efforts to boost the supply of foreign exchange in the country.

IMTOs have swiftly complied with the CBN directive by removing the option of sending dollars or foreign currency to Nigerian bank accounts from their websites and mobile applications.

Instead, Nigerians abroad are now only allowed to transfer the equivalent amount in naira. IMTOs are currently exchanging foreign currencies at a rate of N1,450 to the dollar.

Leading international money transfer services, such as WorldRemit and Sendwave, have informed their customers about the new regulations.

They have emphasized that transfers can now only be made in naira and no longer in USD. This change is a result of the CBN’s directive, which prohibits all money transfers from being paid out in USD in Nigeria.

The CBN had previously instructed banks to pay out foreign currency transfers from abroad in naira to increase the availability of forex.

According to the CBN guideline, all inbound money transfers to Nigeria will be paid to beneficiaries in naira through a bank account or in cash.

Cash payments will require a satisfactory means of identification, and if the beneficiary does not have an account with the IMTO agent bank, the agent bank will credit the beneficiary’s account in another bank.

The exchange rate for the naira payment will be based on the prevailing rate in the Nigerian Foreign Exchange Market.

With this new regulation, Nigerians living abroad will need to adjust their money transfer methods to comply with the CBN’s directive.

This article was updated 2 weeks ago


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