Forex

CBN Directs International Money Transfer Operators to Commence Naira Remittance Pay-Outs

CBN’s move to introduce Naira remittance pay-outs alongside foreign exchange seeks to boost Nigeria’s economy

Published

10 months ago

July 12, 2023

Naira to Dollar Exchange- Investors King Rate - Investors King

In a significant move to enhance the Nigerian economy, the Central Bank of Nigeria (CBN) has instructed International Money Transfer Operators (IMTOs) to initiate remittance pay-outs in Naira, in addition to foreign exchange.

This directive also includes the utilization of the Investors and Exporters’ Window foreign exchange rate for determining the conversion rate for the Naira pay-outs.

The CBN circular, dated July 10, 2023, comes as an extension of a previous circular issued on November 30, 2022, which provided guidelines on the payout policy of Diaspora remittances.

The previous circular introduced the payment of dollars to beneficiaries of diaspora remittances through IMTOs via their chosen banks, granting unrestricted access to their funds.

According to the newly issued circular, the Naira payment option is an additional choice alongside United States Dollars and E-Naira for receiving Diaspora remittances.

Recipients of Diaspora remittances through CBN-approved IMTOs listed in the circular will now have the option to receive their payments in Naira.

The circular specifies that IMTOs are obligated to pay out the proceeds using the Investors’ & Exporters’ window rate as the reference rate on the transaction date. This regulation takes immediate effect.

This recent development follows the CBN’s decision last month to unify all segments of the Nigerian forex market by consolidating all windows into the Investors & Exporters (I&E) window. This strategic move aimed to enhance liquidity, stability, and attract foreign investors to the Nigerian economy.

Similarly, the CBN terminated the RT200 program and the Naira4dollar remittance scheme. The Naira4Dollar scheme, introduced in 2021, incentivized remittances from Nigerians in the Diaspora by providing N5 for every USD1 remitted by the sender and collected by the designated beneficiary.

The scheme proved successful in encouraging more remittances and a consistent inflow of foreign exchange into the country.

The RT200 program, a comprehensive plan to increase non-oil export earnings and achieve $200 billion in foreign exchange repatriation within the next five years, has also been discontinued.

With these latest directives, the CBN aims to provide more flexibility and convenience for beneficiaries of Diaspora remittances, strengthening the nation’s economy and fostering financial stability.

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Naira

Black Market Dollar to Naira Exchange Rate Today 20th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 20th, 2024 stood at 1 USD to ₦1,530.

Published

9 hours ago

May 20, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 20th, 2024 stood at 1 USD to ₦1,530.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,540 and sold it at ₦1,530 on Friday, May 17th, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,530
Selling Rate: ₦1,520

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

Naira

Black Market Dollar to Naira Exchange Rate Today 17th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Published

3 days ago

May 17, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,560 and sold it at ₦1,550 on Thursday, May 16th, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,540
Selling Rate: ₦1,530

Forex

SEC and ABCON Explore Collaboration for ‘Kolectyomoni’ Digital Currency Platform

Published

3 days ago

May 17, 2024

Samed Olukoya

The Association of Bureaux De Change Operators of Nigeria (ABCON) has initiated talks with the Securities and Exchange Commission (SEC) to explore collaboration on its upcoming digital currency market platform, ‘Kolectyomoni’.

This move was underscored during an official visit by ABCON representatives to the newly appointed Director General of the SEC, Dr. Timi Agama. Aminu Gwadabe, President of ABCON, conveyed the association’s eagerness to engage with SEC to ensure the smooth operation of its digital currency platform.

Gwadabe emphasized that ABCON recognizes the regulatory oversight of SEC in the financial sector and seeks its guidance to navigate the complexities of the digital currency market.

He pointed out that while digital currencies hold immense potential for financial inclusion and innovation, they also present regulatory challenges that require collaborative efforts between industry stakeholders and regulatory bodies.

Highlighting the significance of embracing digital currencies, Gwadabe noted, “The future of BDC’s business is digital currency.”

He stressed the growing adoption of digital currencies among Nigerians, citing statistics that reveal a rising number of participants in the digital currency ecosystem, with a substantial market size of $9 billion annually.

In response, Dr. Timi Agama expressed SEC’s openness to support and facilitate the growth of the digital currency sector in Nigeria.

He acknowledged ABCON’s initiative in launching the ‘Kolectyomoni’ platform and assured of SEC’s cooperation in providing regulatory guidance and oversight.

Agama reaffirmed SEC’s commitment to fostering innovation in the financial sector while ensuring investor protection and market integrity.

He underscored the importance of collaboration between regulators and industry players to develop robust frameworks that foster innovation and safeguard against potential risks.

Furthermore, Agama encouraged ABCON to finalize the development of the ‘Kolectyomoni’ digital currency platform and submit it to the SEC for thorough review and assessment by the technical team.

He emphasized the need for timely regulatory oversight to address emerging trends in the digital currency market and maintain regulatory compliance.