Dollar or naira option to recipients of diaspora remittances will help exchange rate ― Chike-Obi

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.

The apex bank, in an effort to enable smooth implementation of its latest directive engaged with the commercial banks and the International Money Transfer Operators (IMTOs) to ensure that recipients of remittance inflows are able to receive their funds in foreign currencies.

In a chat with Tribune Online, on Sunday, Chike-Obi said “The New Diaspora remittances policy is a good one. The only problem is that CBN should have allowed the recipients the option of dollars or naira in any proportion desired by them.

“That would have solved most of these nagging issues while addressing the main objective.”

Some analysts have also argued that part of what the CBN has done with its new foreign exchange (FX) policy is that money transfer operators now have to physically fly in cash into Nigeria.

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This means added costs of transport, insurance, handling, among others. This was the reason why Western Union always cost so much and gave poor rates they sad.

In the old regime, banks pay in the official rate. Some believe that as long as there are thousands of people selling & buying dollars in the black market, the policy might not yield the desired effect.

“The solution is to have a single exchange platform. Reform the black market. Restrict black market purchase to N1,000 per day & require National Identification Number (NIN) as done in other countries. Private black market operators charge only a token fee of 2 per cent for each transaction.

“This will take care of people wanting to travel on holiday and pay school fees for children while business & others deal directly with the banks. The point is no one should legally sell dollar more or less. You make money selling dollars from your fees,” Joseph Oguntayo, a public affairs analyst suggested.

Other stakeholders believe Money speculators are powerful but their power must be curtailed to take this country away from being a failed state.

“Let’s do currency exchange as done in South Africa and other countries,” he suggested.





Dollar or naira option to recipients of diaspora remittances will help exchange rate ― Chike-Obi

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