The Central Bank of Nigeria (CBN), has announced the extension of the deadline of the Naira4Dollar policy.
According the apex bank, the policy is to continue till further notice.
The policy rewards Nigerians with N5 for every $1 they receive through the licensed International Money Transfer Operators (IMTOs).
The apex bank introduced the policy on March 8, in a bid to encourage recipients of dollars to use formal and appropriate banking channels to perform their transactions and also to increase dollar liquidity in the country.
However, the apex bank has now announced an indefinite extension of the policy ahead of the initial May 8 deadline.
This was announced in a circular issued by the CBN’s Trade and Exchange department to all deposit money banks and IMTOs
With the policy, the deposit banks are required to pay N5 for every dollar that is sent into a domiciliary account owned by a Nigerian and the recipient of international money transfers.
The statement reads, ‘’Further to the CBN circular referenced TED/FEM/PUB/FPC/01/003 dated 05 March 2021 on the above subject matter, which was originally scheduled to end on 08 May 2021, we hereby announce the continuation of the scheme till further notice.
‘’All aspects of the operationalization of the programme remain the same. Please take note and ensure compliance.’’
According to financial experts, the move is expected to sustain the foreign exchange market liquidity in Nigeria which has been badly hit by global health crisis, COVID-19 and drop in oil revenue.