CBN Naira For Dollar Scheme For Diaspora Remittances Explained In Easy Terms.

This Scheme introduced by the CBN is just for three months.....

The Naira for Dollar scheme was explained beautifully by a Twitter handle and i think you should read it....

The CBN “Naira 4 Dollar Scheme” is such a laudable policy for diaspora remittance. To understand the benefits of the policy to the economy and how it can’t be explore in its entirety, hopefully this thread will help: cc


To start with, the licensed money transfer operators are restricted by regulation to only restricted to offer official rates by the CBN. And given the arbitrage between the official rate and the parallel market rates, they have been at a disadvantage. Here is why we should care:


The majority of the diaspora sending money home to family and friends use one of these licensed platforms. They’d be offered the official rate. Only the educated and rich few use the risky peer-to-peer medium to get a rate as close to the parallel market as possible.

This policy majorly benefits middle and low-income immigrants in high-income countries as it enables them to send MORE MONEY home to their friends and family. This opportunity helps improve the disposable income available to families depending such money and help spur the economy

In combination with the earlier policy that allows recipients to receive foreign currency, this initiative will further ensure the availability of FX to meet the demand in the local market. Hence closing the arbitrage and reducing the pressure on our currency.

On control, the policy is for 3months and ONLY for licensed operators who must have shown that they comply with Anti Money Laundering (AML) Regulation. In the AML policy, cumulative daily, weekly, monthly and quarterly limits exist and cannot be exceeded.

Still on control, money transfer operators’ KYC doesn’t allow for more than one account to one person. The loose end of this restriction is that one person can open one account each with the different remittance companies. Syncing across remittance companies is need to halt this

The policy is strictly a desperate marketing strategy to improve capital inflow into the country. We will see the NBS data in the coming months to see if the approach
works.''