The Central Bank of Nigeria (CBN) has announced the implementation of new measures aimed at enhancing naira liquidity and increasing diaspora remittances.
In its latest circular, the apex bank announced on Tuesday that eligible International Money Transfer Operators (IMTOs) will now have access to naira liquidity through the bank’s window.
This initiative, it said, aims to improve the accessibility of local currency liquidity, resulting in smoother and more efficient settlement processes for remittances.
Transactions conducted before noon on a trading date will be settled on the same day, as stated by W. J. Kanya, the acting director of the trade and exchange department at the CBN.
Also, all participants in this sector, including IMTOs, authorized dealer banks, and the CBN, are required to submit daily regulatory returns containing comprehensive information on the sources of funds.
Naija News understands that under the new guidelines, IMTO operators will have direct access to the CBN window or can choose to go through their Authorised Dealer Banks (ADBs) to carry out foreign exchange transactions in the market.
The circular provides specific compliance measures to ensure the smooth operation of this initiative.
The Central Bank of Nigeria (CBN) has announced the implementation of new measures aimed at enhancing naira liquidity and increasing diaspora remittances.
In its latest circular, the apex bank announced on Tuesday that eligible International Money Transfer Operators (IMTOs) will now have access to naira liquidity through the bank’s window
This initiative, it said, aims to improve the accessibility of local currency liquidity, resulting in smoother and more efficient settlement processes for remittances.
Transactions conducted before noon on a trading date will be settled on the same day, as stated by W. J. Kanya, the acting director of the trade and exchange department at the CBN.
Also, all participants in this sector, including IMTOs, authorized dealer banks, and the CBN, are required to submit daily regulatory returns containing comprehensive information on the sources of funds.
Naija News understands that under the new guidelines, IMTO operators will have direct access to the CBN window or can choose to go through their Authorised Dealer Banks (ADBs) to carry out foreign exchange transactions in the market.
The circular provides specific compliance measures to ensure the smooth operation of this initiative.
Furthermore, it states that pricing on the CBN portal will align with the NAFEX traded rates, which are based on a market benchmark that is widely accepted.
The operation of this segment will follow the existing arrangements that are already in place for authorised dealers involved in foreign portfolio investment in primary market securities auctions.
The circular emphasizes that these measures are effective immediately, demonstrating the bank’s dedication to maintaining the efficient functioning of the foreign exchange market and enhancing formal remittance channels.
