The Central Bank of Nigeria (CBN) has placed limits on the exchange rate for naira payout of Diaspora remittances as part of measures aimed at halting the free fall of the nation’s currency, Business Hallmark can report.
According to findings, the CBN had last week issued a circular to all authorised dealers, international money transfer operators and the general public.
The circular was signed by the Director, Trade and Exchange Department, CBN, Ozoemena Nnaji.
In the circular dated August 9, 2023 seen by BH, the CBN placed limits on the exchange rate for naira payout of Diaspora remittances.
The apex bank directed that the naira payment option for proceeds of Diaspora remittances should be made within a limit of -2.5 per cent to +2.5 per cent of the previous day’s average rate on the Investors’ and Exporters’ window.
“Further to the circular referenced TED/FEM/PUB/FPC/001/004 dated July 10, 2023 and the meetings held with all banks and IMTOS, the Central Bank of Nigeria hereby announces an allowable limit of -2.5% to +2.5% of the Investors’ and Exporters’ window average rate of the previous day as the anchor rate for the naira payout option.
“Accordingly, all banks and International Money Transfer Operators are required to adhere to the stipulated limits. Please note and ensure strict compliance”, the circular read.
The acting CBN governor, Folashodun Shonubi, had on Monday disclosed that President Bola Tinubu had approved several measures aimed at halting the slide of the naira.
Shonubi, made the disclosure to State House correspondents at the Presidential Villa after briefing the president.
He said Tinubu expressed his concern over the effects of the recent developments in the foreign exchange market, particularly on average citizens.
According to Shonubi, the volatility of the naira in the parallel market is not solely driven by economic factors, but also speculative demand.
The apex bank governor said while he would not disclose specific details of the proposed intervention measures, he warned speculators that the proposed measures could potentially lead to significant losses for them.
He said the primary purpose of his presence at the Presidential Villa was to reassure the President that the CBN was taking decisive action to address the concerns raised.
He expressed confidence that the measures being implemented would yield positive outcomes within a few days.