Nigeria allows money transfer operators to sell forex on key window
TLDR
- Eligible International Money Transfer Operators (IMTOs) now have access to the official foreign exchange window announced by the Central Bank of Nigeria (CBN).
- This new measure will allow IMTOs to access naira liquidity at the official window, facilitating the timely settlement of diaspora remittances.
- The CBN has implemented measures to enable IMTOs to access NGN liquidity at its window, widening access for the settlement of diaspora remittances.
The Central Bank of Nigeria (CBN) has announced that eligible International Money Transfer Operators (IMTOs) will now have access to the official window to sell foreign exchange.
In a circular signed by Dr. W.J. Kanya, the acting Director of the Trade and Exchange Department, the apex bank stated that this measure, effective immediately, will allow IMTOs to access naira liquidity at the official window, facilitating the timely settlement of diaspora remittances.
The regulator says it has "implemented measures that will enable eligible International Money Transfer Operators 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.”
Key Takeaways
Previously, the key participants in the Nigerian FX market included the Central Bank of Nigeria (CBN), authorized dealers (financial institutions licensed by the CBN to trade FX), and clients (retail or corporate financial market participants who buy or sell FX to meet their day-to-day personal or business needs). Meanwhile, CBN Governor Olayemi Cardoso, in an interview with Bloomberg TV on Tuesday, expressed optimism about the stability of the naira. "I do believe that we have more or less seen the worst in terms of volatility. We are also very alert to observing how the market operates and ensuring that it provides the best value that can be achieved using certain tools," he said.
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