Nigeria’s naira to dollar exchange rate depreciated at the NAFEX market on Friday, March 5, 2021.
This is amid the new Central Bank of Nigeria’s ‘Naira 4 Dollar’ policy that has prompted Deposit Money Banks to start wooing customers to send remittances and receive rebate.
The exchange rate at the I & E window closed at N411 to one dollar on Thursday as against N406.5 in the previous day.
This represents about 1.11 per cent appreciation in the currency.
Naira traded for as high as N415 at the Investors and Exporters window as the demand for the greenback continues to rise by both legitimate importers and foreign investors that wanted to repatriate their earnings.
At the parallel market/black market, the naira to dollar exchange rate remained stable at N480/$ since last week Monday.
The closing rate indicated that the exchange rate differential between NAFEX market and parallel market is N69.
Meanwhile, First Bank on Sunday informed its customers that they could receive N5 for every dollar they receive and encouraged them to visit any of its branch to benefit from the offer.
READ ALSO: See 7 Things To Know About CBN’s Naira 4 Dollar Initiative
It said “Receive N5 for every dollar you collect through us via cash pick up or Direct to Account.”
Also, Guarantee Trust Bank, sent out text messages to its customers on Sunday concerning the new policy.
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 CBN’s ‘Naira 4 Dollar Scheme’ to encourage Diaspora remittances takes off today, Monday, March 8, 2021.
Under the scheme that will end on Saturday, May 8, 2021, all recipients of Diaspora remittances through CBN’s International Money Transfer Operators (IMTO) will be paid N5 for every $1 received as remittance inflow.
The CBN described the initiative as an incentive for both senders and recipients of Diaspora remittances, in the circular signed by the Director, Trade and Exchange Department at CBN, A.S Jibrin.
The circular was addressed to all Deposit Money Banks (DMO), International Money Transfer Operators (IMTO) and general public.
PricewaterhouseCoopers has predicted that Nigeria’s remittance flows could reach $34.89 billion by 2023.
It said this can only be accomplished if remittance infrastructure improves and if the right policies are put in place.
The use of reimbursements of remittance fees has been critical in supporting improved inflow of remittances to countries in South Asia and in improving their balance of payments position following the COVID-19 pandemic.
