Tuesday, 5 November 2013

Recipients of Western Union, Moneygram transfers in Nigeria will only be paid in Naira - CBN


Just incase you missed it, Western Union and Moneygram has been told to stop paying Nigerians in foreign currencies. To my knowledge, this is the only country in the world where these companies operates and pay in the local currencies. Read it below and the reason:

In an effort to check money laundering in Nigeria, which it claims is weakening the Naira and risks driving up inflation, the Central Bank of Nigeria (CBN) has stated that recipients of proceeds from international money transfer firms such as Western Union and Money Gram will only be paid in Naira instead of having the option of receiving dollar or Naira.

 The central bank also suspended its twice-weekly Wholesale Dutch Auctions (WDAS) and replaced it with a Retail Dutch Auction (RDA) which will require dealers to reveal the identity of the buyers and will take place on Monday and Wednesday of every week.
 Also dealers will now have to obtain prior approval to import foreign currency bank notes to prevent money laundering and the limit on Naira debit and credit card spending abroad has also been increased to $150,000 per year from $40,000.

The CBN said its actions were in reaction to the huge influx of dollars into the country which it suspects is linked to early political campaigning for 2015 elections. A spokesperson said, "available statistics indicate that Nigeria has become the largest importer of U.S. dollars due to importation of cash by Deposit Money Banks (DMBs)."

CBN Governor, Lamido Sanusi, also said that it is "absolutely wrong for bureau de changes (BDC) to buy hundreds of millions of dollars without any accountability."

Only the banks will benefit from this arrangement and the Federal Government not the people.

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