The Central Bank of Nigeria (CBN) has introduced new measures aimed at boosting accessibility and efficiency in remittance flows into the country. Effective immediately, eligible International Money Transfer Operators (IMTOs) can access naira liquidity directly through the CBN’s window or via Authorised Dealer Banks (ADBs). This allows them to conduct foreign exchange transactions, aligning with local currency requirements.
Transactions completed before noon on any trading day will now be settled on the same day, streamlining the process for IMTOs and enhancing operational efficiency. Pricing for these transactions will be based on Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rates, ensuring consistency with market benchmarks and promoting transparency.
To ensure compliance and smooth implementation, the CBN has outlined specific regulatory requirements, including daily submissions of regulatory returns detailing fund sources. This move underscores the CBN’s commitment to transparency and oversight in financial operations.
Previously not active in Nigeria’s FX market, IMTOs are now recognized as key participants alongside authorised dealer banks and the CBN. This recognition highlights their role in facilitating cross-border money transfers and supporting economic activities through official channels.
In a related policy adjustment earlier this year, the CBN mandated IMTOs to conduct transactions solely in naira, discontinuing the allowance for FX rate quotations. This policy shift aims to enhance transparency and stabilize foreign exchange inflows amidst market volatility.
These initiatives reflect the CBN’s ongoing efforts to optimize the foreign exchange market, foster transparency, and facilitate increased remittance flows essential for economic stability and growth.
Philips Babatunde