Nigeria’s Central Bank (CBN) will now sell foreign exchange directly to International Money Transfer Operators (IMTOs) at the official rate, as the naira maintains relative stability.
In a circular released on Monday, the CBN stated that eligible IMTOs can access the CBN window directly or via authorized dealer banks, with transactions conducted at prevailing NAFEM rates. The circular emphasized, “All licensed IMTOs are reminded that all diaspora remittances must be converted to naira and matched with corresponding foreign currency inflows.”
This measure is the latest in the CBN’s efforts to encourage the use of formal channels for remittances and reduce reliance on the parallel market. In May, the CBN banned street trading of dollars and significantly increased capital requirements for Bureau de Change operators.
The CBN has implemented strict reforms, allowing the naira to trade freely against the dollar and unifying exchange windows. It also cleared a $7 billion FX backlog. These actions initially strengthened the naira, but the gains were reversed. Recently, the naira has been relatively stable due to increased inflows.
On Monday, the naira traded at 1,488 per dollar on the NAFEM window and around 1,500 naira per dollar in the parallel market, according to reports. Additionally, a $2.25 billion financial support package from the World Bank is expected to further boost FX liquidity.
Credit: Techcabal (Text Excluding Headline)
