Official remittances to Nigeria have dropped nearly 40% in the past year, driven by the increase in cryptocurrency usage

International remittances to Nigeria dropped almost 40% from $ 23.8 billion in 2019 to $ 17.2 billion last year, according to the latest World Bank data. Still, despite this decline, currencies, which account for 4% of the country's GDP, continue to be an important source of foreign exchange for the oil-rich country. Immigrants Avoid Official Channels As the data shows, Nigeria has only recorded a total annual inflow of less than $ 20 billion since 2011. This happened in 2016, when a total of $ 19.7 billion in official transfers flowed into the Nigerian economy. However, the recent decline was only the second time in the last decade that Nigerians' remittances abroad fell. Meanwhile, the recent decline in remittances coincided with the depreciation of the naira and currency deficits that arose during that year. This depreciation forced many members of the Nigerian immigrant community to avoid official referral channels. Although the Central Bank of Nigeria (CBN) eventually devalued the naira with the current rate of 1: 420, the exchange rate remains below the parallel market rate of 1: 480, according to Abokifx data. In addition to directly devaluing the naira, CBN also ordered Nigerian financial institutions to stop serving the crypto industry. However, this CBN's plan to limit the use of cryptocurrencies appears to have failed, as reports of end-to-end trade volume increase. CBN Withdrawal Stop Strategy Meanwhile, CBN would launch an incentive program to encourage Nigerians to use official channels when sending money during the same period. money at home. As previously reported by Bitcoin.com News, Nigerian immigrants who transfer money through official corridors will be eligible to receive an equivalent payment of $ 0.012 for every dollar sent under this program. Although Nigerian financial authority

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