CBN’s Naira4dollar scheme attracts $40 million in one week

CBN reacts to flexible exchange rate claims

The Naira4dollar scheme introduced by the Central Bank of Nigeria (CBN) seems to be recording progress as Nigerians in the Diaspora remitted about $40 million through commercial banks in the last one week.

According to Nairametrics, it stated that a reliable source with knowledge about the scheme disclosed that the CBN received circa $40 million last week from remittances up from about $6 million before the policy was introduced.

“At $40 million a week the CBN could be attracting about $160 million a month or $1.9 billion per annum. This will be higher than the estimated $1.1 billion received in 2020 from Diaspora remittances but much lower than the $3.2 billion received in 2019.”

“The central bank captures remittances in its Balance of Payment report and the Foreign Exchange Flows data. While the BOP includes non-cash items remitted into Nigeria, the Foreign Exchange Flows Data records cash items only” Nairametrics stated.

Meanwhile, the naira closed at N409.8/$1 at the Investors and Exporters (I&E) window indicating a 0.08 percent appreciation from N410.13 recorded on Monday.

At the parallel market, the naira maintained stability to close at N486 per dollar which it has maintained for two consecutive days.

Also, the Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele during the press briefing at the end of the Monetary Policy Committee meeting clarified recent claims that the Federal Government has adopted a flexible exchange rate for its transactions.

READ ALSO: Diaspora Remittance: CBN Naira4Dollar Scheme kicks off today

Recall that, Bloomberg had reported that Ahmed said, “Within the government and the central bank, there is only one official rate and that’s the Nafex rate”. The US-news platform also claimed that the Minister told reporters that government would now engage in a flexible rate for transactions that have until now applied to investors and exporters.

The CBN governor however debunked these claims as ‘faulty reporting’, stating that Nigeria still operates a Managed Float exchange rate.

He further explained that the managed float is a policy that allows the CBN to watch the market operations and intervene when necessary.  He also stated that the CBN has not intervened in the I&E window since January 2021.

The apex bank’s chief also stated that constitutionally, the mandate of foreign exchange policy lies with the CBN. Hence, any assertion in this regard without a comment from the apex bank may be seen as misleading. The CBN Governor appealed to members of the press to work with the apex bank to promote more transparency and accurate reporting.