CBN relaxes restrictions on FX rates quoted by IMTOs

The Central Bank of Nigeria (CBN) has removed the allowable limit of exchange rate quoted by the International Money Transfer Operators (IMTOs).

The CBN’s Director of Trade and Exchange, Dr. Hassan Mahmud, disclosed this in a circular addressed to IMTOs and the general public on Thursday.

He said the directive was in line with the CBN’s commitment to liberalise the Nigerian foreign exchange market.

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The apex bank had earlier directed Deposit Money Banks (DMBs) to sell their excess dollar stock in a bid to stabilise the exchange rate.

The CBN also cautioned the DMBs against hoarding excess forex currencies for profit.

Mahmud said: “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.

“For the avoidance of doubt, by this circular, the cap on the allowable limit of -2.5 percent to +2.5 percent around the previous day’s closing rate of the Nigerian Foreign Exchange Market is hereby removed.

“Authorised dealers, IMTOs, and the general public are hereby informed to note and comply accordingly.”