The Central Bank of Nigeria (CBN) has put in place measures to allow eligible international money transfer operators (IMTOs) access naira liquidity at the official window.
The CBN, in a circular, said the new measures will enhance local currency liquidity for the settlement of diaspora remittances.
They are also part of the regulator’s commitment to the smooth functioning of the foreign exchange (FX) markets and enabling greater remittance flows through formal channels, according to the circular.
The CBN said the measures are aimed at widening access to local currency liquidity for the settlement of diaspora remittances.
“Therefore, 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.”
IMTOs are companies that provide cross-border money transfer services.
According to the CBN, they facilitate the transfer of funds from individuals or entities residing abroad to recipients in Nigeria and the payment of a corresponding sum to a beneficiary through a clearing network to which the IMTO belongs.
Stipulating rules to guide the process and enable compliance, the CBN said “same day settlement” will be available for transactions executed “before 12 noon on a trading date”.
The bank said pricing on the CBN portal will be reflective of NAFEX traded rates “observable on an acceptable market benchmark”.
