MasterTeeUSA:
Published 5 hours ago on 9 February 2024

By Oladipo Abiola

International Money Transfer Operators (IMTOs), will now pay Nigerian beneficiaries in Naira instead of Dollars and other foreign currencies as the case was previously.

Based on the new regulation, banks will pay Nigerian beneficiaries in Naira, not dollars, Pounds, Euros or others, for international money transfers received through IMTOs.

Naija News reports the new rule, which is based on the directive from the Central Bank of Nigeria (CBN), affects IMTOs such as Western Union, MoneyGram, Rapid transfer, Ria, and others.

According to a recent notice from Ecobank Nigeria, the CBN directive dated January 31, 2024, stipulates that all in-bound money transfers to Nigeria (via the above-mentioned IMTOS) will be paid only in Naira through a bank account or in cash at the prevailing rate in the Nigerian Foreign Exchange Market.

The Ecobank notice reads: “We would like to bring to your attention recent regulatory changes affecting international money transfers into Nigeria through Western Union, MoneyGram, Rapidtransfer, Ria, and other CBN-approved IMTOS.

“The Circular issued by the Central Bank of Nigeria (CBN) dated January 31, 2024, stipulates that ALL in-bound money transfers to Nigeria (via the above mentioned IMTOS) will be paid ONLY in Naira through a bank account or in cash at the prevailing rate in the Nigerian Foreign Exchange Market.”

This platform understands the move is part of efforts by the CBN to stem the unfavourable exchange rate between the Dollars and Naira.

https://www./2024/02/09/western-union-moneygram-others-to-pay-nigerians-in-naira-instead-of-dollars/

MasterTeeUSA:
I know some Nigerians working virtually will hate this policy...but you will never find a sane country that allows you to keep accounts in foreign currencies, and pay you in foreign currencies. If you send Western Union to the USA, you get paid in dollars...same in the UK. Why would all these money transfers pay in dollars? This has made the speculations and BDCs a lucrative business...I am guilty of sending to Mallam that collect in dollars and resell too at high prices driving up the exchange. This is a good policy in my opinion...feel free to share your thoughts without insults. Show maturity!!!


The policy is excellent and long overdue.
It smacks of economic sabotage to pay money in a foreign currency other than the local currency.
I think this dollarization of the economy started from Gej though I stand to be corrected. He was going round bribing everybody with dollars during the campaigns in 2015.

Sunijacks:
Will this policy help the naira?

MasterTeeUSA:
I know some Nigerians working virtually will hate this policy...but you will never find a sane country that allows you to keep accounts in foreign currencies, and pay you in foreign currencies. If you send Western Union to the USA, you get paid in dollars...same in the UK. Why would all these money transfers pay in dollars? This has made the speculations and BDCs a lucrative business...I am guilty of sending to Mallam that collect in dollars and resell too at high prices driving up the exchange. This is a good policy in my opinion...feel free to share your thoughts without insults. Show maturity!!!

bnanny:
Hey bro. No need for long talk. Speculators, international transfers and all are not the reasons for naira downturn. After all these try and errors policies we'll all see the outcome sooner.

Obinoscopy:
It will help the naira temporarily but will rebound with immense negative effect on the naira due to the scarcity of the dollar. Whether we like it or not, Nigeria is import driven thus thrives on the dollar. The moment dollar gets scarce, the prices of things will go up, including petrol. The dollar will get scarce because Nigerians don't trust that the government will allow a free float of the forex exchange thus there will be a reduction in the inflow of dollar into the economy.

The solution is simple, the government needs to put mechanism in place to switch our economy from a consumption driven economy to production driven one. Then the government can allow a free float of the naira which will give confidence of investors and diasporans allowing their hard earned dollars to get into the economy. Once dollar floods the economy, it's value will drop and the naira will gain.

Obinoscopy:
It will help the naira temporarily but will rebound with immense negative effect on the naira due to the scarcity of the dollar. Whether we like it or not, Nigeria is import driven thus thrives on the dollar. The moment dollar gets scarce, the prices of things will go up, including petrol. The dollar will get scarce because Nigerians don't trust that the government will allow a free float of the forex exchange thus there will be a reduction in the inflow of dollar into the economy.

The solution is simple, the government needs to put mechanism in place to switch our economy from a consumption driven economy to production driven one. Then the government can allow a free float of the naira which will give confidence of investors and diasporans allowing their hard earned dollars to get into the economy. Once dollar floods the economy, it's value will drop and the naira will gain.

Throwback:
This is wonderful.

What were we using Dollars to do inside Nigeria?

Collect your Naira and spend it as it is.

Next is to clean out those who have dollars in their domiciliary account while suffocating those who are carrying dollars cash about.

Those who have no business with foreign currency must be made to see it like Ebola.

MasterTeeUSA:
I know some Nigerians working virtually will hate this policy...but you will never find a sane country that allows you to keep accounts in foreign currencies, and pay you in foreign currencies. If you send Western Union to the USA, you get paid in dollars...same in the UK. Why would all these money transfers pay in dollars? This has made the speculations and BDCs a lucrative business...I am guilty of sending to Mallam that collect in dollars and resell too at high prices driving up the exchange. This is a good policy in my opinion...feel free to share your thoughts without insults. Show maturity!!!

forgiveness:
I have said it. Turn the dollar and foreign currency in the domiciliary account into naira. This will starve the BDCs of foreign currency.

4. Allow banks to make naira transfer in order to pay for school fees abroad.

5. Return back to the days naira atm card can withdraw money outside Nigeria.

These will reduce pressure on dollar demand.

Nobody will need to search for dollars.

ivolt:

Nope.
It will completely kill the economy.
Of course, you will enjoy the Euphoria for weeks, maybe even months,
then the birds will come home to roost.

And adaptive BDCs will simply migrate to virtual trading.


You mean you wan to pay foreign schools using Naira?
This must be a joke.
You are better off banning Nigerians from schooling abroad.


So, how would your bank pay the processing banks for the money you withdraw outside Nigeria.
It is definitely not with Naira.


Yes, it will reduce the pressure by an insignificant amount.


Really, so how do you think the phone in your hand was delivered to you?
Via Naira?

In order to achieve your fantasy, you would have to ban all Nigerians from
traveling out of the country or using any products made outside of Nigeria
using North Korea's style, then you can really reduce the pressure on Naira.

Sunijacks:
Will this policy help the naira?

ivolt:

Nope.
It will completely kill the economy.
Of course, you will enjoy the Euphoria for weeks, maybe even months,
then the birds will come home to roost.

And adaptive BDCs will simply migrate to virtual trading.


You mean you wan to pay foreign schools using Naira?
This must be a joke.
You are better off banning Nigerians from schooling abroad.


So, how would your bank pay the processing banks for the money you withdraw outside Nigeria.
It is definitely not with Naira.


Yes, it will reduce the pressure by an insignificant amount.


Really, so how do you think the phone in your hand was delivered to you?
Via Naira?

In order to achieve your fantasy, you would have to ban all Nigerians from
traveling out of the country or using any products made outside of Nigeria
using North Korea's style, then you can really reduce the pressure on Naira.

MasterTeeUSA:
I know some Nigerians working virtually will hate this policy...but you will never find a sane country that allows you to keep accounts in foreign currencies, and pay you in foreign currencies. If you send Western Union to the USA, you get paid in dollars...same in the UK. Why would all these money transfers pay in dollars? This has made the speculations and BDCs a lucrative business...I am guilty of sending to Mallam that collect in dollars and resell too at high prices driving up the exchange. This is a good policy in my opinion...feel free to share your thoughts without insults. Show maturity!!!

Obinoscopy:
It will help the naira temporarily but will rebound with immense negative effect on the naira due to the scarcity of the dollar. Whether we like it or not, Nigeria is import driven thus thrives on the dollar. The moment dollar gets scarce, the prices of things will go up, including petrol. The dollar will get scarce because Nigerians don't trust that the government will allow a free float of the forex exchange thus there will be a reduction in the inflow of dollar into the economy.

The solution is simple, the government needs to put mechanism in place to switch our economy from a consumption driven economy to production driven one. Then the government can allow a free float of the naira which will give confidence of investors and diasporans allowing their hard earned dollars to get into the economy. Once dollar floods the economy, it's value will drop and the naira will gain.

forgiveness:
I have said it. Turn the dollar and foreign currency in the domiciliary account into naira. This will starve the BDCs of foreign currency.

2. No organization or schools must be allowed to do transaction in cash in Nigeria. Including Nigerian immigration. In this way, pressure will reduce on dollars. I was sorry for Nigeria when I learnt British school in Lekki pays in dollars as at 10 years ago.

3. Nobody must possess 1,000 dollars coming into Nigeria. And any currency brought into the country must be deposited at the bank or change to naira at the airport or any point of entry.

4. Allow banks to make naira transfer in order to pay for school fees abroad.

5. Return back to the days naira atm card can withdraw money outside Nigeria.


These will reduce pressure on dollar demand. Nobody will need to search for dollars.

Okoroawusa:
As long as there are no differences between bank rate and black market rate will this work. But once there is disparity between them even if it's #1 then people would prefer dollars in cash to change at the black market thereby defeating the whole essence.

Let's see how this goes