IMTOs to access naira directly from CBN, ADBs

By Chinwendu Obienyi

The Central Bank of Nigeria (CBN) on Tuesday revealed that International Money Transfer Operators (IMTOs) can now access naira directly from it or through Authorised Dealer Banks (ADBs).
This it said is to ensure greater and timely facilitation of diaspora remittances and improve liquidity in the local currency market.
In a circular sent to Deposit Money Banks (DMBs), IMTOs and the public, the CBN noted that the measures drafted with immediate effect.
The circular, which was signed by the Acting Director, Trade and Exchange Department, CBN, Dr W.J Kanya, said, “As part of CBN’s 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) access Naira (NGN) liquidity through the CBN.
These measures are aimed at widening access to local currency liquidity for the timely settlement of diaspora remittances.
Henceforth, eligible IMTO operators will be able to access the CBN window directly or through their Authorized Dealer Banks (ADBs) to execute transactions for the sale of foreign exchange in the market.”
This move by the CBN comes at a time when the official market is struggling with FX liquidity. For about a month, the value of FX turnover on the NAFEM window has been between the range of $83 million and $390 million.
Furthermore, this initiative follows a similar policy from the previous month, where the CBN allowed International Oil Companies (IOCs) to sell 50 per cent of their repatriated export proceeds to authorized forex dealers, aiming to boost FX supply in the market.
One of the notable guidelines is the option for same-day settlement for transactions executed and confirmed before 12 noon on a trading date.
This measure is expected to expedite the process and ensure quicker liquidity for remittance beneficiaries.