Afrigather Nigeria’s Central Financial institution will permit Worldwide Cash Switch Operators (IMTOs) to promote foreign exchange on the official window because the naira maintains relative stability.
Eligible IMTOS will entry the CBN window immediately or via authorised supplier banks, the CBN mentioned in a round on Monday. The transactions will probably be based mostly on prevailing NAFEM charges.
“All licensed IMTOs are reminded that every one diaspora remittances are anticipated to terminate in Naira and match with the corresponding international foreign money inflows,” the round added.
That is the regulator’s newest transfer to encourage remittance flows via formal channels and cut back the position of the parallel market. In Might, the regulator banned road buying and selling of {dollars} and sharply elevated capital necessities for Bureau de Change operators.
The CBN has taken robust reforms permitting the naira to commerce freely towards the greenback and unifying the trade home windows. It additionally cleared a $7 billion FX backlog. The strikes produced some quick positive factors for the naira however have been reversed. Nevertheless, the naira has been comparatively steady in current weeks as a consequence of elevated inflows.
The naira traded at 1,488 per greenback on Monday, in response to the latest available data on the NAFEM window. It modified arms at round 1,500 naira per greenback on the identical day within the parallel market, in response to stories. A $2.25 billion financial support package from the World Financial institution can also be anticipated to spice up FX liquidity.
