The Central Bank of Nigeria has activated plans to double foreign-currency remittance flows through formal channels by granting 14 new International Money Transfer Operators (IMTOs) Approval-in-Principle (AIP).
The Bank’s Acting Director of Corporate Communications, Hakama Sidi Ali, stated that this will spur liquidity in Nigeria’s Autonomous Foreign Exchange Market (NAFEM), augmenting price discovery to enable a market-driven fair value for the naira.
She stated that the initiative would help increase the sustained supply of foreign exchange in the official market by promoting greater competition and innovation among IMTOs and ultimately, lower the cost of remittance transactions and boost financial inclusion.
She said that government securities issuances were significantly oversubscribed, with foreign investors accounting for over 75 percent of bids received at the auctions conducted on March 1 and 6, 2024.
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