To better manage foreign currency transactions and bolster the nation’s forex reserves, the Central Bank of Nigeria (CBN) has directed mandating Nigerian banks to pay international transfers in Naira.
This directive comes as part of the CBN’s revised guidelines on international money transfer operations and signals a departure from the previous practice of allowing payouts in dollars and other foreign currencies.
Under the new guidelines, all inbound money transfers to Nigeria must be paid to beneficiaries in Naira through either a bank account or in cash, with the proceeds of transfers exceeding the equivalent of $200 to be channeled through an account.
Cash payments will only be made upon the provision of satisfactory means of identification to ensure transparency and accountability in the process.
The CBN’s decision aims to streamline foreign exchange operations, curtail the activities of black market traders, and facilitate greater oversight of international money transfers.
By requiring banks to process transfers in Naira, the CBN seeks to enhance liquidity in the local currency and mitigate forex scarcity challenges.
In response to the CBN’s directive, Nigerian banks have commenced full implementation, informing customers of the changes and outlining the new procedures for international money transfers.
While the new guidelines may require an adjustment period for stakeholders, they are expected to contribute to the overall resilience and transparency of Nigeria’s financial ecosystem, aligning with the government’s efforts to strengthen economic fundamentals and foster sustainable growth.