Zimpapers Logo

The Central Bank of Nigeria (CBN) has eased rules on international money transfers, taking another step in freeing up its volatile foreign-exchange market to attract billions of dollars being sent home by citizens living abroad.

The apex bank has granted International Money Transfer Operators (IMTOs) the flexibility to quote the naira exchange rate against the dollar based on the prevailing market rates.

This approach follows the principle of a “willing seller, willing buyer” basis; hence, exchange rates will be determined by the market forces of supply and demand.

This move was announced through a circular titled “Removal of Allowable Limit of Exchange Rate Quoted by the International Money Transfer Operators.”

What the circular says:

“The circular with reference TED/FEM/PUB/FPC/001/009 dated September 13, 2023 states that International Money Transfer Operators are required to quote rates within an allowable limit of -2,5 percent to +2,5 percent around the previous day’s closing rate of the Nigerian Foreign Exchange Market. However, in line with the CBN’s commitment to liberalise the Nigerian Foreign Exchange Market, IMTOs are hereby allowed to quote exchange rates for naira payout to beneficiaries based on the prevailing market rates at the Nigerian Foreign Exchange Market on a willing seller, willing buyer basis.”

The apex bank noted that authorised Dealers, International Money Transfer Operators, and the general public are hereby informed to note and comply accordingly. – Business Insider Africa