Frantic CBN allows diaspora remittances to be withdrawn in dollars and sold anywhere including black market

To save the naira, CBN now allows diaspora remittances to be withdrawn dollar cash.

The Central Bank of Nigeria (CBN) has announced the amendment of procedures for receipt of diaspora remittances in an apparent and frantic attempt to improve liquidity in the forex market and reduce the disparity between the black market and official I&E window.

This disclosure was made in a circular issued by the CBN on Monday, November 30, 2020, to all authorized dealers and the general public and signed by its Director for Trade and Exchange Department, Dr O.S. Nnaji.

What the CBN is saying

In the new amended procedure, CBN stated that beneficiaries of Diaspora Remittances through International Money Transfer Operators (IMTOs) shall henceforth receive such inflows in foreign currency (US Dollars) through the designated bank of their choice.

The CBN’s circular partly reads,

‘’In an effort to liberalize, simplify and improve the receipt and administration of diaspora remittances into Nigeria, the Central Bank of Nigeria (CBN) wishes to announce as follows;

Beneficiaries of Diaspora Remittances through International Money Transfer Operators (IMTOs) shall henceforth receive such inflows in foreign currency (US Dollars) or into their ordinary domiciliary account. Such recipients of remittances may have the option of receiving these funds in foreign currency cash (US Dollars) or into their ordinary domiciliary account.’’

The apex bank also stated that such recipients of remittances may have the option of receiving these funds in foreign currency cash (US Dollars) or into their ordinary domiciliary account.

The CBN stated that these changes are necessary to deepen the foreign exchange market, provide more liquidity and create more transparency in the administration of diaspora remittances into Nigeria.

The apex bank also points out that these changes would help finance a future stream of investment opportunities for Nigerians in the Diaspora, while also guaranteeing that recipients of remittances would receive a market-reflective exchange rate for their inflows.

It also urged all authorized dealers and the general public to note that beneficiaries shall have unfettered access and utilization to such foreign currency proceeds, either in cash and/or in their domiciliary accounts in line with the circular.

What this means

This new directive means when Nigerians living in diaspora transfer money to loved ones in the country, they can in turn withdraw the money in dollar cash and sell wherever they want to.

Currently, the exchange rate in the black market is around N500/$1 compared to N395 at the official BDC market.

Now, Nigerians who recieve foreign transfers such as Western Union or Moneygram can withdraw it in dollars and then sell at the black market rate or wherever they want to.

Currently, most Nigerians living in diaspora who transfer cash to loved ones back home do so at the parallel market exchange rate, Nairametrics can confirm.

The optics

Nairametrics believes this latest move by the CBN is aimed squarely at improving liquidity in the retail end of the foreign exchange market hoping that this will strengthen the naira at the retail end of the black market.

In a news interview on Arise TV, Dr. Nnaji explained that “when you have more inflows into the country at dollar value it will help bring down the BDC rates, it will also help solidify or unify the rates in the market so we don’t have multiple currency rates,” a confirmation that this is targeted at the black market.

A visibly pertubed and contrite Nnaji reiterated that “for now because US dollar is a currency that we have available in the banking sector, you can collect your money in US dollars” maintaining that this was the only currency that you withdraw for now.

She also claimed you can collect in Naira.

Nigeria receives an average of $5 billion per quarter in foreign remittances but suffered a sharp drop in the second quarter of 2020 when it fell to $3.38 billion.

Flashback on Dr. Nnaji

Earlier in the year, Nairametrics reported that the CBN claimed it was investigating remittances in the diaspora between January 2016 and December 2019. Ironically, the same person who made the claim was Dr. Nnaji. Here is what she said;

“If the dollar and euro are everywhere, what happens to our currency, the Naira now is not an internationally accepted currency, if we dilute it, it will have consequences. We want our Naira to be acceptable by other West African countries; we want it to be an internationally accepted currency.

“If we have more funds come in as remittances, our foreign reserves go up, and when that happens, the confidence in the Nigerian economy will go up. It helped in price stability and exchange rate stability management and that the apex bank was interesting in increasing Diaspora remittances"

Source: https://nairametrics.com/2020/11/30/cbn-allows-diaspora-remittances-to-be-withdrawn-in-dollars/

Panasonic’s Global Dry Battery Shipments Top 200 Billion

Panasonic has become the first Japanese company to achieve this milestone

Panasonic Corporation has announced that as of the end of September 2020, it became the first Japanese company to ship a cumulative total of 200 billion dry batteries worldwide after achieving the 100 billion milestones in 2001 since the start of in-house production of dry cells in 1931.

Panasonic started manufacturing dry batteries in 1931 to promote the widespread use of its square-type handheld battery-powered lamp, the first product under the National brand. In 1939, the company, a pioneer of overseas factory expansion, established its first production site outside of Japan in Shanghai.

Since then, Panasonic has opened factories in several countries including Thailand, Peru, Costa Rica, Brazil, Belgium, India, Indonesia, and Poland, producing a cumulative total of approximately 150 billion dry batteries overseas. Along the way, the company has contributed to improving the quality of life of people and promoting industries in these countries.

Commenting on the achievement, Koji Hatanaka – General Manager, Panasonic Marketing Middle East and Africa (PMMAF) said,

“Panasonic’s dry battery brands like EVOLTA and EVOLTA NEO are among the best alkaline batteries and have set the Guinness World Record for longest-lasting AA alkaline batteries for 13 consecutive years.

Our dry battery products make energy portability possible in remote areas of the world, assist in natural disasters and offer trusted performance for our customers, and reaching 200 billion shipments is a proof of trust our partners and customers put in us. Panasonic will continue to contribute to achieving a better life by globally supplying high-quality and safe dry batteries.”

The progress of dry batteries is closely related to the devices that use them. Panasonic’s dry batteries have a superb track record in quality and performance. In 2008, Panasonic released EVOLTA alkaline dry batteries, which achieved the expiry date of 10 years, an industry first in Japan.

EVOLTA NEO alkaline dry batteries were released in 2017, which when compared with the conventional EVOLTA, feature a superior long-lasting performance after long-term storage, approximately 30% less gas build-up after over-discharge, and approximately 10% longer life, thereby realizing dry batteries that are safer and last even longer. Since its release in 2008, EVOLTA, and EVOLTA NEO after 2017, have been recognised as the longest-lasting AA alkaline batteries by the Guinness World Records, with the latest recognition on August 17 this year for 2020, the 13th consecutive year.

To promote the longest-lasting performance of the EVOLTA series recognised by the Guinness World Records, Panasonic held an “EVOLTA challenge” event every year from 2008 to 2019, taking up a variety of challenges using EVOLTA and EVOLTA NEO. Panasonic has set four Guinness World Records through these challenges.

In the future, Panasonic will enhance sales mainly in the Asia and Latin America markets, which are expected to have high demand growth for dry batteries. Panasonic enjoys high brand recognition in these regions, where high-performance alkaline dry batteries are expected to replace manganese batteries.

Taking advantage of such market shift, Panasonic will proactively supply high-performance, high-quality alkaline dry batteries centred on the EVOLTA series, which the company has developed over the years, to achieve business growth. In sales promotion activities in overseas markets, mainly in Asia and Latin America, the company’s advertisement will feature Panasonic LEO, an original mascot for overseas symbolizing the “long-lasting,” “contribution,” and “familiarity” attributes of its dry batteries, aiming to establish the brand image of Panasonic as a provider of high-quality, safe and secure batteries.

SOURCE: https://brandspurng.com/2020/10/26/panasonic-becomes-the-first-japanese-company-to-ship-200billion-dry-batteries/