Beneficiaries of diaspora remittances transferred through the international monetary transfer operators (IMTO) will now be able to receive their inflows in foreign currency (US Dollar). This was disclosed on Monday by the Central Bank of Nigeria’s Director of trade and exchange, O.S Nnaji.
Recipients of such funds may opt for either cash payment in foreign currency or the money be paid into the designated domiciliary account He said, “These changes are necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of Diaspora remittances into Nigeria,” the statement read.
“In addition, these changes would help finance a future stream of investment opportunities for Nigerians in the Diaspora, while also guaranteeing that recipients would receive a market reflective exchange rate for the market.”
Under the new guidelines, operators of export domiciliary accounts will continue to operate based on existing regulations that allow account holders use their funds for business operations only with any extra funds sold in the import and export window.
Also, operators of ordinary domiciliary accounts where accounts are funded electronically or wire transfer would be allowed unfettered and unrestricted use of these funds for eligible transactions. And where accounts are funded by cash lodgments, existing regulations will continue to apply.