Annual US Dollar Remittances to Nigeria Surge to $34 Billion but Forex Woes Persist – Emerging Markets Bitcoin News

Free Bitcoins: FreeBitcoin | BonusBitcoin

Coins Kaufen: Bitcoin.deAnycoinDirektCoinbaseCoinMama (mit Kreditkarte)Paxfull

Handelsplätze / Börsen: Bitcoin.de | KuCoinBinanceBitMexBitpandaeToro

Lending / Zinsen erhalten: Celsius NetworkCoinlend (Bot)

Cloud Mining: HashflareGenesis MiningIQ Mining


|e9afabf46c46b0b12e94fb00c099ec53|

|37657237e0fe8cfb77ce3319e8a86bbd|

The increase, which has been attributed to the Central Bank of Nigeria (CBN)’s “naira for dollar” incentive scheme, once again highlights the growing importance of diaspora remittances to Africa’s most populated country.

As Biodun Adedipe, an economist with Adedipe Associates Limited is quoted explaining, the CBN’s incentive scheme may well be the reason why the target of $34 billion in annual diaspora remittances was reached two years ahead of schedule.

However, despite this surge in remittance inflows, Nigeria continues to grapple with shortages of foreign exchange. Such forex shortages, in turn, contribute to the naira’s continued depreciation as well as the resultant rise in inflation.

|322e80472486b88653a97f80ce68fa50|

In attempting to explain why Nigeria is not fully benefiting from the rising remittances, Adedipe points to the fact that a lot of the dollars sent do not find their way to the foreign exchange market in Nigeria. Adedipe explained:

For example, someone wants to send money to his or her family here in Nigeria, this person, let’s say has $10,000 in the US, and wants to give the naira equivalent to his family member here in Nigeria, ordinarily the way it works in other country is that $10,000 will come into the forex market within Nigeria, and becomes a boost to supply here.

However, this is not happening because “the reality is that in Nigeria’s situation, the dollar doesn’t leave where it is,” Adedipe explains. “The person that provides the naira equivalent here would rather keep the dollar equivalent outside there, so it doesn’t come into the FX market in Nigeria.” According to Adedipe, Nigerian authorities now need to find ways that “make it more attractive for those foreign currencies generated by migrant Nigerian workers to be remitted home.”

|0071ccf7a6cae45e0d99e11cf9744670|

Image Credits: Shutterstock, Pixabay, Wiki Commons, Santos Akhilele Aburime

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Free Bitcoins: FreeBitcoin | BonusBitcoin

Coins Kaufen: Bitcoin.deAnycoinDirektCoinbaseCoinMama (mit Kreditkarte)Paxfull

Handelsplätze / Börsen: Bitcoin.de | KuCoinBinanceBitMexBitpandaeToro

Lending / Zinsen erhalten: Celsius NetworkCoinlend (Bot)

Cloud Mining: HashflareGenesis MiningIQ Mining

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close