CBN Governor, Godwin Emefiele, had on Saturday announced the introduction of an incentive of N5 for every $1 of fund remitted to Nigeria through International Money Transfer Organisations in the bank’s new forex policy.
He said the move was part of CBN’s reforms to boost the inflow of foreign currency into the country, adding that the N5 for every $1 fund remitted to Nigeria initiative would begin on Monday (today).
Deposit Money Banks reached out to their customers on Sunday telling them that N5 would be given for every dollar received by the customers.
Guarantee Trust Bank, for instance, sent out text messages to its customers on Sunday concerning the new development.
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.”
What Does CBN Intend To Do?
Experts say what the government is doing is trying to wrestle the dollars away from the forex cabbals to individual hands. By so doing, the forex cabbals (bankers) cannot accumulate enough dollars to dictate the exchange rates. Most banks in conjunction with money transfer companies were compensating recipients in Naira and pushing the dollars back to the banks which in turn recycles the dollars at higher numbers to the people.
Meanwhile, Central Bank Governor, Godwin Emefiele said the policy is expected to encourage banks and financial institutions to develop products and investment vehicles geared at attracting investments from Nigerians in the diaspora.
He said countries such as Bangladesh and Pakistan have adopted the use of reimbursement schemes to support remittance inflows.