The Central Bank of Nigeria (CBN) has introduced the Naira as a payout option for recipients of proceeds from international money transfers. In a recent document signed by S.O Nnaji, the director of the trade and exchange department of the bank, it stated that International Money Transfer Operators (IMTOs) are required to pay out the funds using the Investors’ & Exporters’ window rate as the anchor rate for transactions.
The directive, obtained by Businessday, refers to a circular dated November 30, 2020, and announces the inclusion of the Naira as a payout option for international money transfers. IMTOs are now obligated to disburse the proceeds using the Investors’ & Exporters’ Window rate, which serves as the reference rate for the day of the transaction.
The new regulation is effective immediately, allowing recipients of diaspora remittances through CBN-approved IMTOs the choice of receiving payments in Naira, in addition to the existing options of USD and eNaira.
The CBN’s updated list of IMTOs includes reputable operators such as Aftab currency exchange, Azimo Limited, Cashpot Limited, Caperemit UK Limited, CSL Pay Limited, DT & T Corporation, Flutterwave Technology Solutions Limited, Leadremit Limited, among others. These IMTOs play a crucial role in facilitating international money transfers and providing payment solutions for individuals and businesses.
This move by the CBN is expected to promote financial inclusion and enhance convenience for recipients of international money transfers in Nigeria. By allowing the Naira as a payout option, the CBN aims to provide recipients with greater flexibility in receiving their funds, while the use of the Investors’ & Exporters’ Window rate as the anchor rate ensures transparency and consistency in the exchange process.
The inclusion of the Naira as a payout option reflects the CBN’s efforts to strengthen the Nigerian currency and facilitate seamless cross-border transactions. It is anticipated that this development will foster increased economic activity and provide a boost to the country’s remittance inflows.
As the new regulation takes effect immediately, individuals and businesses involved in international money transfers in Nigeria can now consider the Naira as a viable payout option, alongside USD and eNaira, further diversifying their choices and aligning with their specific financial needs.
