CBN extends deadline for dollar for naira promo

The Central Bank of Nigeria has extended the deadline for its Naira 4 Dollar Scheme indefinitely.

The bank announced this Wednesday through a statement it issued to all deposit money banks, International Money Transfer Operators (IMTO), and the general public.

Although the bank did not give a reason for its action, the move is expected to further boost the country’s foreign reserve and increase dollar circulation.

“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,” the memo said.

“All aspects of the operationalization of the programme remain the same. Please take note and ensure compliance.’’

To increase the inflows of diaspora remittances into the country, the bank had in March launched the scheme that pays naira to senders and recipients of international money transfers.

In a circular issued to all Deposit Money Banks (DMO) and IMTOs, the scheme which started March 8 will end on May 8.

Since the crash of oil price last year amid COVID-19 pandemic, the Naira has struggled against as the country has witnessed reduced foreign exchange.

The CBN scheme rewards both senders and recipients of international money transfers.

Although analysts agree that the scheme is capable of boosting the foreign reserve, they are however not optimistic about its effectiveness.