The Central Bank of Nigeria (CBN) has announced new measures aimed at enhancing naira liquidity and increasing diaspora remittances. According to a recent circular, eligible International Money Transfer Operators (IMTOs) will now have direct access to naira liquidity through the CBN’s window, facilitating smoother settlement processes for remittances.
Under the new guidelines, IMTO operators can access the CBN window directly or through their Authorised Dealer Banks (ADBs) to execute foreign exchange transactions. The circular outlines specific compliance measures to ensure the effective operation of this initiative, with transactions settled on the same day if executed before noon on a trading date.
The pricing on the CBN portal will mirror the NAFEX traded rates, following existing arrangements for authorized dealers involved in foreign portfolio investment. Key participants include IMTOs, authorized dealer banks, and the CBN, with all participants required to submit daily regulatory returns to the CBN.
The CBN aims to double foreign currency remittance inflows through formal channels, promoting greater competition and innovation amongst IMTOs to lower transaction costs.
Source: Business Day