The CBN has frowned at activities of some International Money Transfer Operators who continue to facilitate diaspora remittances into the country in Naira.
THE STANDARD
BUSINESS
Central Bank of Kenya head office in Nairobi. [Jonah Onyango, Standard]
Coronavirus caught the world flatfooted, but nothing has pulled a surprise on economic experts more than the hike in diaspora remittances to poor nations during the pandemic.
The World Bank had even projected that remittance flows to low- and middle-income countries were expected to drop by around 20 per cent.
Nine months later, official figures tell a different story – a story of how Africans give, not just out of ability, but out of need and resilience.
In Kenya, what has kept the economy breathing during the pandemic has been agriculture and diaspora remittances.
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DIASPORA REMITTANCES IN NIGERIA: EXAMINING THE NEW CBN
POLICY
By Ifeoluwa Ebiseni (Associate,
AELEX)
Over the past few weeks, the Central Bank of Nigeria
(“CBN”) has issued circulars amending and clarifying
the procedure for receipt of diaspora remittances (“the
Circulars”).
1
According to the CBN, the Circulars were issued in an effort to
liberalise, simplify and improve the receipt and administration of
diaspora remittances into Nigeria. It was also stated that the
clarifications and amendments are aimed at stabilising and
deepening the foreign exchange market, providing more liquidity,
and creating transparency, especially in the administration of
diaspora remittances into Nigeria.
The initial circular issued on 30 November 2020 (“the
Diaspora Remittances into Nigeria fall 27% to $12.9bn
On
By Babajide Komolafe
Diaspora remittances into Nigeria fell by 27 percent, year-on-year (y/y) to $12.9 billion as at September 2020 from $17.6 billion in the corresponding period of 2019.
The 27 percent decline is 3.9 percentage points higher than the 23.1 percent decline projected by the World Bank for the Sub Sahara Africa region in 2020.
However, quarter-on-quarter, remittances into the country rose in the third quarter of 2020 (Q3’20) by 14.8 percent, thus reversing the declining trend recorded in Q2’20.
In its Q3’20 Economic Report, the Central Bank of Nigeria (CBN) stated: “Inflow of personal transfers in the form of workers’ remittances increased significantly by 14.8 per cent to $3.87 billion, relative to $3.37 billion in the second quarter of 2020.”