Lagos – The Central Bank of Nigeria (CBN) has directed all banks to pay all money transfers into the country with local currency.
The new directive, which is with immediate effect, covers all money transfers sent to the country through MoneyGram, Western Union and AfriCash.
Although no reasons have been given prompting the new directive, most banks have already begun sending notification of the new CBN directive to their customers.
In one of the notifications, United Bank for Africa (UBA) informs its customers, “We wish to inform you that in line with Central Bank of Nigeria’s latest directive on money transfer, payment with AfriCash, West Union and MoneyGram will henceforth be made in Naira.”
The bank also noted that the exchange rate for the conversion of the transfer amount shall be the prevailing interbank rate on the day of payment.
The new directive may not be unconnected with attempt to stop plans from trading on the dollar. The CBN has often decried the practice where banks have two exchange rates-the official and black market rates.
Most banks have often explored the black market rate by selling foreign currency they receive at the official rate, to Bureau De Change operators at higher rates.
Analysts believe the new CBN directive looks likely put a stop to the practice as 'black market' rate transaction will no longer be applicable.
– CAJ News