The Central Bank of Nigeria (CBN) has taken steps to enhance foreign currency remittance flows through formal channels by granting 14 new International Money Transfer Operators (IMTOs) approval-in-principle (AIP).
According to Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, this move aims to increase liquidity in Nigeria’s Autonomous Foreign Exchange Market (NAFEM). It is expected to contribute to price discovery, allowing for a market-driven fair value for the naira.
Ali emphasized that this initiative will promote competition and innovation among IMTOs, leading to sustained foreign exchange supply in the official market. Ultimately, the cost of remittance transactions will be reduced, and financial inclusion will be facilitated.
Additionally, Ali highlighted the significant oversubscription of government securities issuances. Foreign investors accounted for over 75% of the bids received during auctions conducted on March 1 and 6, 2024.
