IMF Partly Blames Uncertainty in Nigeria’s Forex Market for Drop in Remittances
The uncertainty that prevails in Nigeria’s foreign exchange market is partly to blame for the plunge in cross-border remittances into the country, an official with the International Monetary Fund (IMF) has said. Covid-19 Another Contributing Factor According to a report by local news outlet Punch, the official, Abebe Selassie, said this in response to a question posed to him during a virtual press briefing. However, in his two-part response to the question, Selassie starts by acknowledging the impact the global Covid-19 pandemic has had on cross-border remittances in general. He....
Related News
According to a new report, the depreciation of some currencies against the U.S. dollar is contributing to the declining international remittances. After touching an all-time high of $548 billion in 2019, the World Bank report now projects remittances to drop 7.2% in 2020 to $508 billion and a further decline of 7.5% to $470 billion in 2021. Volatile Currencies In its Migration and Development Brief 33, the World Bank details how the Covid-19 induced currency depreciation has affected the flow of global remittances. In the brief, the authors point to the exchange rate between the U.S.....
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’t seem to be entering domestic forex markets. Target Attained Two Years Ahead of Schedule 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,....
While the CBN may be open to the idea of remittances, there is no evidence they are considering bitcoin as a potential financial source. The Central Bank of Nigeria is saying “yes” to foreign remittances. In an attempt to build the country’s international finance portfolio, the CBN is amending the Foreign Exchange Manual to allow non-native currencies and remittances to enter its money market. The document now reads: “A resident/non-resident Nigerian national and/or entities and foreign national or entity may invest in Nigeria by way of purchase of money market instruments such as....
Gold bug and bitcoin opponent Peter Schiff says the U.S. government’s actions in the past 78 years are partly responsible for the massive depreciation of the U.S. dollar. Using a medical bill from 1942 to illustrate the extent of the dollar’s decline, Schiff says the $70 paid to foot hospital expenses that year was equal to two ounces of gold. Dollar Depreciation In 1942, an ounce of gold was sold for about $35 but due to inflation and the subsequent depreciation of the U.S. dollar, the same ounce now sells for above $1,750. Using this analogy, Schiff asserts that the same....
Nigerian crypto startup Yellow Card says it processed over $165 million in volume during the first eleven months of this year. The figure represents a growth of more than 1,840% over the amount of remittances processed in the last six months of 2019. Launched in June 2019, Yellow Card enables Africans at home and abroad to buy and sell cryptocurrency using their local currency via bank transfer, cash, and mobile money. The service is being used mainly for remittances, a multi-billion-dollar industry in Africa. Yellow Card co-founder and chief executive officer Chris Maurice told....