Remittances are perceived as one of the key benefits that migration bring to originating countries.
According to the United Nations Conference on Trade and Development (UNCTAD), remittances are private flows of resources mostly intended for direct consumption and household support.
In fact, a report by UNCTAD titled: “Maximising the Development Impact of Remittances,” stated that there is solid evidence that remittances can and have assisted many developing countries and least developed countries (LDCs) in maintaining balance of payment (BOP) stability, ensuring the availability of hard currency, improving countries’ credit worthiness for external borrowing and increasing internal aggregated demand.
Also, it pointed out that during crisis, remittances have proven to be more reliable and sustained flows than other sources of external financing such as foreign direct investment, public debt or official development assistance.
Nigeria: CBN Directs Banks to Close IMTOs Naira Accounts allafrica.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from allafrica.com Daily Mail and Mail on Sunday newspapers.
Dollar or naira option to recipients of diaspora remittances will help exchange rate ― Chike-Obi Dollar or naira option to recipients of diaspora remittances will help exchange rate ― Chike-Obi
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The Chairman of Fidelity Bank Plc and former Managing Director, Assets Management Corporation of Nigeria (AMCON), Mr Mustafa Chike-Obi, has suggested that the Central Bank of Nigeria (CBN) should have given recipients of Dollar remittances the option of receiving eighter in Naira or Dollars.
This he said would have forced the banks to give out dollars at the rate that is equivalent to that of parallel make to discourage recipients from shifting demand to that segment of the market, thereby narrowing the gap between the official and unofficial rates.
TODAY
December 18, 2020
The Central Bank of Nigeria (CBN) has directed payment switching and processing companies to stop local currency transfer of diaspora remittances received through International Money Transfer Operators (IMTOs), with a threat to revoke licences of defaulting firms.
The apex bank also directed Mobile Money Operators (MMOs) to disable wallets from receipt of funds from IMTOs.
The directives, according to CBN, were to ensure compliance with its recent policy which allows beneficiaries of diaspora remittances to receive the proceeds in foreign currency.
CBN gave these directives in a circular, yesterday, to IMTOs and Payment Service Providers (PSPs) titled, “Receipt of Diaspora Remittances: Additional Operational Guidelines”.
Again, CBN orders DMBs to close naira accounts of IMTOs thenationonlineng.net - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thenationonlineng.net Daily Mail and Mail on Sunday newspapers.