How to benefit from the Naira To Dollar program
Publication displays: 133
According to the International Monetary Fund (IMF), remittances are money sent from countries or foreign economies. These funds are sent by people who move from their home country to new countries on a temporary or permanent basis. Remittances mainly consist of cash items. Sometimes these may be non-monetary items that pass through formal channels such as wire transfers through international money transfer operators (IMTOs) and informal channels.
Remittance is money sent by a migrant to their home country or sent to family members in their home country. It is a non-commercial money transfer made by a migrant or member of the diaspora to their family or to people in their country of origin.
Nigeria alone accounts for almost half of remittances to sub-Saharan Africa. These remittances, in 2018, amounted to around $ 24 billion, which represents and accumulates to more than 6% of Nigeria’s gross domestic product.These remittances have grown steadily over the years. Statistical data shows that Nigeria’s remittances over the past six years have increased by over 126%. Remittances to Nigeria are expected to reach around $ 30 billion in 2021, according to report released by PricewaterhouseCoopers.
In an effort that seemed to encourage sending dollars by any means possible, the Central Bank of Nigeria issued a circular to international money transfer operators (IMTO), deposit banks (DMB) or commercial banks. and the general public. The circular stated that from Monday March 8, 2021 to Saturday May 8, 2021, there will be 5 additional naira credit alerts on every $ 1 received by wire transfer, and CBN will pay these naira 5 out of every dollar in the recipient’s bank account. .
In other words, if someone sends, say, $ 20,000, CBN will facilitate and credit an additional 100,000 naira to the recipient’s account. Additionally, when someone sends $ 5,000 through remittance sources, CBN will credit an additional Naira 25,000 to the recipient’s account. The regime has, however, been extended indefinitely.
Who can benefit from this plan?
In order for recipients to benefit from the Naira4Dollar program, the sender must process the remittance through any registered IMTO such as MoneyTO. The transferred funds will then be sent to an account managed by DMB (Deposited Money Bank), for example a UBA account. So, if a friend or family member abroad sends you money through cryptocurrencies or any other platform, you will not be able to benefit from the Naira4Dollar program.
Reasons for the Naira4Dollar program
The Central Bank of Nigeria and the Nigerian government have proposed the Naira4Dollar program because the CBN believes that these remittances can solve the country’s currency liquidity problem. After all, the inflows are more than 11 times the country’s foreign direct investment (FDI). For this reason, the program has been extended indefinitely by the Central Bank of Nigeria.
Diaspora remittances have been seen to potentially support the liquidity of Nigeria’s foreign exchange market. Liquidity has recently been hit hard by the coronavirus pandemic and, as a result, declining crude oil revenues. Despite their best efforts, the CBN encountered difficulties in maintaining liquidity in foreign currencies.
The challenge is that a large portion of diaspora remittances do not reach Nigeria through the appropriate and official channels such as IMTOs, DMBs or approved Money Transfer Agencies (MTAs). Due to the high rates and transaction costs incurred when using these official channels, most people in the diaspora tend to boycott IMTOs and MTAs and instead opt for other unofficial channels that offer lower rates and relatively lower transaction fees and which also pay naira remittances.
With the aim of building customer satisfaction, convincing and resolving the issue leading to the boycott of IMTOs by members of the diaspora, MoneyTO, an approved IMTO headquartered in London, UK, came up with a solution. . In 2020, MoneyTO launched its business and financial transfer services in Nigeria. MoneyTO, as part of its business objectives, is constantly looking for ways to improve its services to achieve customer satisfaction.
Some of the ways MoneyTO has tried to achieve customer satisfaction include offering relatively lower and better transaction fees on remittances. MoneyTO also provides support through online chat on its website, online video calling, phone, Facebook, and email. On top of that, MoneyTO strives to deliver the best values to customers for less. Their transaction fees and exchange rates are the best in the market. These unbeatable rates mean that remittance recipients will always receive more money for every dollar they receive compared to other remittance services.