{"id":11531,"date":"2021-08-31T10:54:27","date_gmt":"2021-08-31T10:54:27","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/annual-us-dollar-remittances-to-nigeria-surge-to-34-billion-but-forex-woes-persist\/"},"modified":"2021-08-31T10:54:27","modified_gmt":"2021-08-31T10:54:27","slug":"annual-us-dollar-remittances-to-nigeria-surge-to-34-billion-but-forex-woes-persist","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/annual-us-dollar-remittances-to-nigeria-surge-to-34-billion-but-forex-woes-persist\/","title":{"rendered":"Annual US Dollar Remittances to Nigeria Surge to $34 Billion but Forex Woes Persist"},"content":{"rendered":"

According to a report, the value of annual dollar remittances by Nigerians working abroad has surged to $34 billion, a figure that easily surpasses the previous record-high of $25 billion. Still, a large portion of the funds doesn\u2019t seem to be entering domestic forex markets.<\/strong><\/p>\n

Target Attained Two Years Ahead of Schedule<\/h2>\n

The increase, which has been attributed to the Central Bank of Nigeria (CBN)\u2019s \u201cnaira for dollar\u201d incentive scheme, once again highlights the growing importance of diaspora remittances to Africa\u2019s most populated country.<\/p>\n

As Biodun Adedipe, an economist with Adedipe Associates Limited is quoted<\/a> explaining, the CBN\u2019s incentive scheme may well be the reason why the target of $34 billion in annual diaspora remittances was reached two years ahead of schedule.<\/p>\n

However, despite this surge in remittance inflows, Nigeria continues to grapple with shortages<\/a> of foreign exchange. Such forex shortages, in turn, contribute to the naira\u2019s continued depreciation<\/a> as well as the resultant rise in inflation.<\/p>\n

<\/p>\n

Dollars Sent Remain Outside Nigerian Forex Market<\/h2>\n

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:<\/p>\n

For example, someone wants to send money to his or her family here in Nigeria, this person, let\u2019s 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.<\/p>\n

However, this is not happening because \u201cthe reality is that in Nigeria\u2019s situation, the dollar doesn\u2019t leave where it is,\u201d Adedipe explains. \u201cThe person that provides the naira equivalent here would rather keep the dollar equivalent outside there, so it doesn\u2019t come into the FX market in Nigeria.\u201d According to Adedipe, Nigerian authorities now need to find ways that \u201cmake it more attractive for those foreign currencies generated by migrant Nigerian workers to be remitted home.\u201d<\/p>\n

What are your thoughts on this story? Tell us what you think in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nEmerging Markets, Biodun Adedipe, Central Bank of Nigeria, cross border remittances, Foreign exchange, inflation, naira, naira depreciation, Nigerian diaspora remittances<\/p>\n","protected":false},"excerpt":{"rendered":"

According to a report, the value of annual dollar remittances by Nigerians working abroad has surged to $34 billion, a figure that easily surpasses the previous record-high of $25 billion. Still, a large portion of the funds doesn\u2019t seem to be entering domestic forex markets. Target Attained Two Years Ahead of Schedule The increase, which…<\/p>\n","protected":false},"author":0,"featured_media":11532,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-11531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/11531"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=11531"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/11531\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/11532"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=11531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=11531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=11531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}