Dollar vs Naira: Who Really Benefits?

[Chinyere]

CBN has directed that diaspora remittances should now be settled in naira instead of dollars. This means if someone sends $1,000 from abroad, the receiver will get naira, not dollars.
The big question is:
Is this good for the economy or does it reduce the value diaspora Nigerians send home?
Because if the exchange rate used is lower than the black market rate, the receiver may lose money.

Will this policy strengthen the naira or discourage diaspora remittances?

 

[Mr.Simon]

CBN has directed that diaspora remittances should now be settled in naira instead of dollars. This means if someone sends $1,000 from abroad, the receiver will get naira, not dollars.
The big question is:
Is this good for the economy or does it reduce the value diaspora Nigerians send home?
Because if the exchange rate used is lower than the black market rate, the receiver may lose money.

Will this policy strengthen the naira or discourage diaspora remittances?

It can help the naira by bringing more dollars into the official system, but if the rate isn’t fair, people will simply avoid it.

So yes, it may strengthen the currency but it could also reduce remittances if senders feel they’re losing value.