CBN’s “Naira-4-Dollar” Scheme Achieving Desired Results – Economist
An economist, Prof. Mike Obadan, says the “Naira-4-Dollar’’ scheme introduced by the CBN on March 5, 2021 to attract Foreign Exchange is achieving desired results.
Obadan, a non-Executive Director/Member, Monetary Policy Committee, CBN, said this in Akure while answering questions from participants at a two-day seminar organised by the CBN for Finance Correspondents and Business Editors.
The Naira-4-Dollar scheme took effect on March 8, 2021 with an initial terminal date of May 8, 2021, which has been extended indefinitely.
The scheme was designed to encourage remittance inflows from the diaspora and entails the giving N5 bonus for every one dollar remitted to serve as an incentive for both senders and recipients of money transfers.
It was equally designed to enhance the supply of Foreign Exchange and consequently ease pressure in the Foreign Exchange market.
According to Obadan, the naira-for-dollar policy has been very successful in attracting diaspora remittances.
“During COVID-19, diaspora remittances averaged six million dollars a week, but now it records about 100 million dollars a week. “The amount of Foreign Exchange coming to the country through remittances has shot-up.
“When we look at figures for domiciliary accounts held by commercial banks, the total figures have shot up, so it’s a good policy designed to attract inflow from our own people abroad,’’ Obadan said.
The professor noted that the CBN had implemented various strategies, policies and measures to enhance liquidity in the Foreign Exchange market and ensure the stability of exchange rates.
Some of the strategies and policies, Obadan said, were measures to boost local production, non- oil exports, Foreign Exchange supply and economic diversification.