“During COVID-19, diaspora remittances averaged $6 million a week, but now it records about $100 million a week.”
Anon-executive director of CBN’s Monetary Policy Committee, Mike Obadan, says the ‘Naira-4-Dollar’ scheme introduced by the CBN on March 5, 2021, to attract foreign exchange is achieving desired results.
Mr Obadan, an economist, disclosed this while fielding questions from participants at a two-day seminar organised by the CBN.
The scheme took effect on March 8, 2021, with an initial terminal date of May 8, 2021, now extended indefinitely.
The scheme was designed to encourage remittance inflows from the diaspora and entails giving N5 bonus for every $1 remitted to serve as an incentive for both senders and recipients of money transfers.
It was designed to enhance foreign exchange supply to ease pressure in the forex market. According to Mr Obadan, the naira-for-dollar policy has been successful in attracting diaspora remittances.
“During COVID-19, diaspora remittances averaged $6 million a week, but now it records about $100 million a week. The amount of foreign exchange coming to the country through remittances has shut up,” explained Mr Obadan.
The MPC member added, “When we look at figures for domiciliary accounts held by commercial banks, the total figures have shot up, so it’s a good policy designed to attract inflow from our own people abroad.”
The professor noted that the CBN implemented various strategies, policies and measures to enhance liquidity in the forex market and ensure the stability of exchange rates.
Some of the strategies and policies, Obadan said, were measures to boost local production, non-oil exports, forex supply and economic diversification.
(NAN)
