The introduction of the digital currency known as the eNaira by the Central Bank of Nigeria (CBN) as a method of payment for diaspora remittance recipients has been announced.
The move, according to the apex bank, was made to advance efforts to liberalize the payment of diaspora remittances.
The bank issued a circular with the following title: eNaira Payment Option for Diaspora Remittance Recipients," which was published on June 15, 2023.
Source obtained the circular, which was sent to the public and the International Money Transfer Operators (IMTOs).
According to the CBN, the guidelines in the circular signed by Dr. Ozoemena Nnaji, Director of the CBN's Trade and Exchange Department, will make it easier to pay recipients who choose to pay with eNaira.
The guidelines require the IMTOs to apply to the Central Bank of Nigeria (CBN) for a one-time "No-Objection" to pay out in eNaira.
Additionally, the bank must provide account information for receiving foreign currency from IMTOs.
The Central Bank of Nigeria, on the other hand, emphasized that the option to receive diaspora remittance funds in eNaira remained unaffected and that the payout in digital currency would follow the dollar payout.
The framework stipulates that IMTOs must pre-fund the CBN account with foreign currency before opening merchant wallets through the CBN.
As a result, the IMTO merchant wallet will be backed by the eNaira equivalent of the foreign currency that the central bank had already pre-funded.
In addition, the CBN explained that the payment process will involve the sender initiating a diaspora transfer with an overseas IMTO of choice and providing the beneficiary's wallet information.
After that, the IMTO accesses the eNaira web wallet portal, debits its eNaira merchant wallet, and credits the beneficiary with the I&E window rate of the eNaira equivalent of the foreign currency sent at the origin.
){kind=link}