June 25, (THEWILL) – The Central Bank of Nigeria (CBN) has said International Money Transfer Operators (IMTOs) can henceforth access the CBN window directly or through their Authorized Dealer Banks (ADBs) to execute transactions for the sale of foreign exchange in the market.
The apex bank, in a circular signed by its Acting Director, Trade and Exchange Department, Dr. W. J. Kenya, noted that the new measure, aimed at enhancing local currency liquidity for settlement of diaspora remittances, is part of its commitment to the smooth functioning of the Foreign Exchange Markets and enabling greater remittance flows through formal channels.
Addressed to all Deposit Money Banks (DMBs) and IMTOs, the circular dated June 24, 2024, reads in part: “As part of the CBN commitment to the smooth functioning of the Foreign Exchange Markets and enabling greater remittance flows through formal channels, the Bank has implemented measures that will enable eligible International Money Transfer Operators (IMTOs) to access NGN liquidity at the CBN window.
“These measures are aimed at widening access to local currency liquidity for the settlement of diaspora remittances.
“Therefore, eligible IMTOs will be able to access the CBN window directly or through their Authorised Dealer Banks (ADBs) to execute transactions for the sale of foreign exchange in the market.
“To guide this process, this circular sets the following for compliance:
1. Same-day settlement will be available for transactions executed before 12 noon on a trading date;
2. The pricing on the CBN portal will be reflective of NAFEX traded rates observable on an acceptable market benchmark;
3. The operation of this market segment follows the existing arrangement in place for authorised dealers with Foreign Portfolio Investment participating in the primary market securities auctions;
4. Regulatory returns, to be submitted to the CBN by all participants on a daily basis, are mandatory and this is expected to contain all the relevant information on the sources of funds;
5. Participants in this segment are the IMTOs, Authorised Dealer Banks and CBN.
“This circular is with immediate effect.”
