The naira weakened against the dollar to 482 at the parallel market on Monday, paring some of its recent gains, despite the new policy on diaspora remittances introduced by the Central Bank of Nigeria last week.
The local currency had last Monday plunged to 500 per dollar, its lowest level in more than three years, but rose to 470 against the greenback on Thursday from 485 on Wednesday. The naira however fell to 475 on Friday.
While the naira fell further on Monday at the parallel foreign exchange market, it was stable at the Investors’ and Exporters’ Window as it closed at 395 against the dollar, according to FMDQ Group.
Last Monday, the CBN announced a new policy initiative in a bid to boost remittance inflows and foster an environment that would enable faster, cheaper, and more convenient flow of remittances back to Nigeria.
According to the new policy, beneficiaries of diaspora remittances, through international money transfer operators, shall henceforth receive such inflows in foreign currency (US dollars) through the designated bank of their choice.
It said such recipients of remittances might have the option of receiving these funds in foreign currency cash or into their ordinary domiciliary account.
The apex bank insisted last Wednesday that all Deposit Money Banks must close all Naira General Ledgers through which the naira remittances were being carried out.
The CBN Governor, Mr Godwin Emefiele, announced on Thursday that the policy would kick off on Dec. 4.