February 02, (THEWILL) – The Central Bank of Nigeria (CBN), has removed allowable limit of exchange rate quoted by the International Money Transfer Operators (IMTOs).
The apex bank had directed the IMTOs to quote rates within a permissible range of -2.5% to +2.5% around the previous day’s closing rate of the Nigerian Foreign Exchange Market. It had also directed Deposit Money Banks (DMBs), to sell their excess dollar stock in a bid to stabilise the exchange rate. It also cautioned the DMBs against hoarding excess fx currencies for profit.
Dr Hassan Mahmud, the Director, Trade and Exchange Department of the CBN, in a circular addressed to IMTOs and the general public on Thursday, said the directive is in line with the CBN’s commitment to liberalise the Nigerian foreign exchange market.
Dated January 31, 2024, the circular reads: “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 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.”
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