The Central Bank of Nigeria (CBN) has decided to let International Money Transfer Operators (IMTOs) sell foreign currency through the official exchange window. This move comes as the naira shows signs of stability.
According to a recent announcement from the CBN, eligible IMTOs can access the central bank’s exchange window directly or through authorized banks. The transactions will follow the current NAFEM exchange rates.
The announcement also reminded licensed IMTOs that all remittances from abroad should be converted to naira and should match the incoming foreign currency.
This step is part of the central bank’s efforts to encourage the use of formal channels for money transfers and to lessen the reliance on the unofficial market. In May, the central bank banned street trading of dollars and significantly increased the capital requirements for Bureau de Change operators.
The CBN has introduced stringent reforms, including allowing the naira to float freely against the dollar and merging different exchange rate windows. It also addressed a $7 billion foreign exchange backlog. These measures initially strengthened the naira but were later reversed. Recently, the naira has been relatively stable due to increased foreign currency inflows.
As of Monday, the naira traded at 1,488 per dollar on the NAFEM window. On the parallel market, it traded at around 1,500 naira per dollar. Additionally, a $2.25 billion support package from the World Bank is expected to improve foreign exchange liquidity.
