“Further to the CBN Circular referenced TED/FEM/PUB/FPC/01/003 dated 05 March 2021 on the above subject matter, which was originally scheduled to end on May 8, 2021, we hereby announce the continuation of the scheme until further notice,” noted the Central Bank of Nigeria. Simply, CBN is expanding the horizons to attract US dollars. Yet, there are many skeptics.
Chief Executive Officer of Financial Derivatives Company Bismarck Rewane described the scheme as a ‘promo gimmick’, and “unusual”: “The Central Bank would probably understand in the end that there is no other way of managing an exchange rate than having one rate so that people would stop exploiting it.”
Nigeria’s diaspora remittance is currently estimated at $25 billion, and the central is targeting at least $30 billion annual remittance to curtail COVID-19 strains on the economy. Some experts believe the move will help the African largest economy to stay afloat amidst decline in oil revenue.
“The projection is that very soon, we can hit as much as $30 billion in terms of diaspora remittances annually which can be directed at investments at home. The chambers of commerce, which is located all over the country, is a solid platform through which these diaspora remittances can be channeled into developmental purposes,” Director-General of the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) Ayo Olukanni said.
For me, Naira will not advance unless Nigeria begins to make things. All the financial engineering in CBN headquarters is hopeless in the long-term. Naira will be saved through factories and warehouses, and we hope CBN and the government will help those communities.
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