Nigeria’s Central Bank (CBN) is now allowing International Money Transfer Operators (IMTOs) to sell foreign currency (forex) at the official exchange rate. This move comes as the naira, Nigeria’s currency, remains relatively stable.
According to a CBN announcement on Monday, eligible IMTOs can access the CBN window directly or through authorised dealer banks. These transactions will follow the current NAFEM exchange rates.
The CBN reminded all licensed IMTOs that remittances from the diaspora should be converted to naira and match the incoming foreign currency amounts.
This latest policy aims to boost remittances through official channels and curb the influence of the parallel market. Previously, in May, the CBN banned street trading of dollars and raised the capital requirements for Bureau de Change operators.
The CBN has been implementing significant reforms, including allowing the naira to trade freely against the dollar and unifying the exchange rates. These efforts included clearing a $7 billion backlog in foreign exchange. Although these reforms initially strengthened the naira, some gains were reversed. Nonetheless, the naira has been stable in recent weeks due to increased foreign currency inflows.
On Monday, the naira traded at 1,488 per dollar in the official NAFEM window and around 1,500 per dollar in the parallel market. Additionally, a $2.25 billion financial support package from the World Bank is expected to improve foreign exchange liquidity.
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