CBN Extends Its Naira-4-Dollar Scheme Indefintely As FX Crisis Continues

The Central Bank of Nigeria (CBN) has extended indefinitely its Naira 4-dollar scheme for diaspora remittances which was introduced a few months ago.

This disclosure is contained in a statement issued by the apex bank to all deposit money banks, International Money Transfer Operators (IMTO), and the general public, on May 5, 2021.

The naira-for-dollar scheme, which started on March 8, was originally scheduled to end on May 8, 2020.

With the scheme, diaspora remittance recipients are rewarded with an extra N5 for every dollar wired through the official routes.

The incentive was introduced to show up remittances and discourage the use of informal windows. The extension of the scheme comes as the pressure on the naira continues.

The statement from CBN reads, ‘’Further to the CBN circular referenced TED/FEM/PUB/FPC/01/003 dated 05 March 2021 on the above subject matter, which was originally scheduled to end on 08 May 2021, we hereby announce the continuation of the scheme till further notice.

‘’All aspects of the operationalization of the programme remain the same. Please take note and ensure compliance.’’