• Japa, FX rates convergence to push diaspora remittance to $26b
A high spread is considered a sufficient incentive for market manipulation and round-trip transactions, which are rife in the country’s FX market. According to the agency, remittances from the diaspora have played an increasingly essential role in Nigeria’s economy, thereby serving as an important source of FX earnings and a catalyst for economic growth and development.
According to the agency, the slow economic recovery and cost of living crises that confronted many developed economies in 2022 were indicative of the recent downtrend. The agency said but as more Nigerians are discouraged by the country’s gloomy economic conditions and look overseas for opportunity, their remittances will continue to play a crucial role in sustaining the country’s economy.
“In June 2023, the CBN liberalised the foreign exchange regime and did away with market segmentation, thereby collapsing all the segments into a single exchange rate window – Investors and Exporters Window – and adopted a managed floating exchange rate regime.