Central Bank (CBN) warns banks and other operators to pay diaspora remittances to their owners in dollar or face sanctions.

The Bank further directed international money transfer operators to inform beneficiaries that they they must get paid in hard currency.

Recipients are henceforth to be paid foreign currency cash or directly into their domiciliary accounts, CBN said.

CBN said the measure enables government to monitor foreign inflows and shore up a weakened Naira in the forex market.

Pay Diaspora remittances in dollar

Experts said yesterday that government hopes to use individual foreign remittances to flood the market and drive down Naira exchange rate.

CBN also said it is developing a central reporting portal to track inflow of foreign remittances.

The portal will be managed by the Nigerian Interbank Settlement System (NIBSS), it said.

Beneficiaries of foreign remittances, including diaspora funds, have long complained that they were being paid in Naira.

What this means is that intermediary money operators will no longer receive diaspora remittances.

Among those barred are operators of POS machines,  mobile money, and switches such as Interswitch.

Experts said the measures will stop local agents from hoarding forex to sell for profit when demand pushes up the rates.

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