BREAKING: CBN Gives New Directives On Foreign Currency Payment

The Central Bank of Nigeria (CBN) has given new directives to International Money Transfer Operators (IMTOs) on foreign currency payment.

The new rules allow beneficiaries of diaspora remittances to collect the proceeds as cash in foreign currency.

This new directive was announced through a circular which was signed by the Director, Trade and Exchange Department, CBN, Mr. O. Nnaji and sent to banks and IMTOs.

According to the circular titled, “Re: Amendment to Procedures for receipt of Diaspora Remittances,” Mr Nnaji said: “Further to the Circular Ref. No. TED/FEM/FPC/GEN/01/011 of November 30. 2020. on the above subject, we wish to reiterate and clarify to All International Money Transfer Operators (IMTO) the following; ‘IMTO’s must ensure that all funds in favour of beneficiaries/recipients in Nigeria be deposited into the Agent Banks‘ correspondent account.

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“Agent Banks (Deposit Money Banks) in Nigeria will be responsible for all payment to beneficiaries/recipients either in foreign currency cash (USD) or into the benehciaries’/recipients’ domiciliary account in Nigeria.

‘The mode (if payment either in cash or transfer is at the sole discretion of the beneficiaries/recipients.

“Please ensure strict compliance and be guided accordingly.”