The Central Bank of Nigeria has liberalised money transfers through wire service companies such as Western Union and Moneygram which will enable recipients of foreign exchange transfers in the country receive their money in foreign currency and no longer in Naira.
The move by the CBN, according to its officials, will increase remittances of foreign exchange into the Nigerian economy and reduce speculative attacks on the Naira.
Since the first quarter of the year, Nigeria has faced an exchange rate crisis triggered by a drop in oil prices due to the Covid-19 pandemic.
During the period, the CBN maintained foreign exchange controls and officially devalued the local currency by 6.2% to N390 to the dollar.
But foreign exchange shortage has seen the Naira tumble to N500 to the dollar on the parallel market.
Lillian Jijingi