Nigeria’s Central Bank (CBN) has announced that International Money Transfer Operators (IMTOs) will now be permitted to sell foreign exchange (forex) on the official market, helping to maintain the naira's relative stability.
According to a CBN circular released on Monday, eligible IMTOs can access the CBN window directly or through authorized dealer banks, with transactions based on the prevailing NAFEM rates.
The circular emphasized that "all licensed IMTOs are reminded that all diaspora remittances are expected to terminate in Naira and match with the corresponding foreign currency inflows."
This initiative is part of the regulator’s ongoing efforts to promote remittance flows through formal channels and diminish the influence of the parallel market. In May, the CBN banned street trading of dollars and significantly increased capital requirements for Bureau de Change operators.
The CBN has implemented rigorous reforms to allow the naira to trade freely against the dollar and unify exchange windows. It also addressed a $7 billion FX backlog. Although these measures initially strengthened the naira, they were later reversed. Despite this, the naira has remained relatively stable recently due to increased inflows.
On Monday, the naira traded at 1,488 per dollar on the NAFEM window, while in the parallel market, it was around 1,500 naira per dollar. Additionally, a $2.25 billion financial support package from the World Bank is expected to further enhance FX liquidity.