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CBN To Boost Remittances by Paying N5 for Every $1 Received

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The Central Bank of Nigeria aims to boost remittance into the country by incentivising remittance recipients. The CBN published a circular announcing the “CBN Naira 4 Dollar Scheme”. A scheme which will enable remittance recipients earn a N5 for every dollar received.

According to the CBN, it’ll pay through commercial banks an “incentive of N5 for every USD1 remitted by sender and collected by designated beneficiary. 

The CBN said the incentives will be paid to recipients whether they choose to collect the USD as cash or transfer the same to their domiciliary accounts. 

The Central Bank believes the initiative will help to sustain the encouraging increase in inflows of diaspora remittances into the country.

Central Bank CBN Naira 4 Dollar Scheme

The scheme will begin as from Monday, the 8th of March, 2021 and will run till Saturday, 8th of May, 2021.

This circular is coming just a month after the Central Bank prohibited financial institutions from dealing with individuals or corporate entities involved in cryptocurrency and finding and closing accounts of same entities.

See also: Vice President Yemi Osibanjo Calls for Regulation not Prohibition of Cryptocurrency

The Central Bank has been trying to boost the remittance into the country and this current move is in line with its action towards crypto just a month ago. 

Concerning the CBN’s prohibition on dealing with and on cryptocurrency by financial institutions, the Securities and Exchange Commission SEC, also expressed its opinion saying it’s in agreement with the apex bank.

In an interview with Adedeji Owonibi on CryptoTvplus Inside Blockchain program, he called out the CBN saying the Banker’s Bank is living in the past and not up-to date with the latest technologies that can be used to trace crypto transactions which it called “opaque” and “black“.

The current Central Banks move is aimed at capturing remittances in increasing levels. The practicality and benefits of the scheme will only be known by Saturday, 8th of May, 2021.

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