Diaspora Remittances: ABCON says FX market will achieve equilibrium

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By Lydia Ngwakwe
Lagos, Dec. 3, 2020 The Association of Bureau de Change Operators of Nigeria (ABCON) says the amended procedures which allows Diaspora Remittances to be withdrawn in foreign currency will make the forex market attain equilibrium.

The President of ABCON, Aminu Gwadabe, told journalists in Lagos, that already, the Naira was making great impact and appreciating fast, since the pronouncement was made by the apex bank.

“This is good news; when we have liquidity in the market, that is when we can achieve market equilibrium; which I am sure is what CBN is worried about.

“So, what we are witnessing now is a positive development as Naira is appreciating very fast against the dollar at the parallel market. This will discourage hoarding and speculation.

“The naira appreciated against the dollar, closing at N490/$1 at the parallel market on Dec.1, 2020; this is a great impact on the black market,” he told NAN.

Gwadabe said that the amended procedure would improve liquidity in the market as recipients now had options to collect dollars and could also sell at the black market.

NAN reports that the CBN had on Monday, Nov. 31, 2020 said in its amended procedures for receipt of diaspora remittances that beneficiaries of diaspora remittances, through International Money Transfer Operators shall henceforth, receive such inflows in foreign currencies through designated bank of their choices .

It said with the new policy, recipients of remittances may have the option of receiving such funds in foreign currency cash (US Dollars) or into their ordinary domiciliary account.

CBN said these changes were necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of diaspora remittances into Nigeria.

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