Since the introduction of the Central bank of Nigeria’s (CBN) “Naira4Dollar Scheme” in March 2021, the Naira rate has fallen by a whopping N127 (or 26%)
Specifically, the parallel market rate of N612/$1 as of Monday, 4th of July, 2022, compares to N485/$1 prior to the launch of the “Naira4Dollar Scheme”.
- This reflects a N127 reduction or 26% depreciation to the value of the Naira on the parallel market since the scheme was implemented.
Fifteen Months After Its Introduction, Naira4dollar Promo Fails To Save Naira
Naira4Dollar: The CBN launched the “Naira 4 Dollar Scheme” on March 8, 2021, to incentivize the inflow of remittances from the diaspora into the country, in response to the inadequate forex supply and ongoing pressure on the country’s exchange rate.
The key requirement for this Naira4Dollar program to function was that remittances from the diaspora had to be sent via an authorized international money transfer operator (IMTO).
- Thus, if you received a diaspora remittance of $20,000 (Twenty Thousand Dollars) CBN would simply credit your Naira account with an additional N100,000 (N5 x 20,000).
- Originally set to end in May 2021, this Naira4Dollar initiative was extended indefinitely.