The Central Bank of Nigeria (CBN) has said that it has granted 14 new International Money Transfer Operators, IMTOs Approval-in-Principle (AIP) to double foreign-currency remittance inflows through formal channels amid foreign currency crisis.
Hakama Sidi Ali, CBN’s Acting Director of Corporate Communications, disclosed this in a statement on Wednesday.
According to CBN, the initiative will help increase the sustained supply of foreign exchange in the official market by promoting greater competition and innovation amongst IMTOs, lowering the cost of remittance transactions and boosting financial inclusion.
CBN’s thinking is that increasing formal remittance flows, which are one of the major sources of foreign exchange and account for over 6 per cent of gross domestic product, would help ease the historical volatility in Nigeria’s exchange rate caused by external factors, such as fluctuations in foreign investment and oil export proceeds.
“This will spur liquidity in Nigeria’s Autonomous Foreign Exchange Market (NAFEX), augmenting price discovery to enable a market-driven fair value for the naira,” Olayemi Cardoso, the CBN Governor, recently disclosed the apex bank’s target to double remittance flows into Nigeria within a year, which he firmly believed was possible.
On Wednesday, the Naira recorded its first N61 gain against the dollar at the foreign exchange market for the first time after weeks of decline.
Forex crisis: Why we granted 14 IMTOs approval on FX remittance – CBN
