CBN relaxes restrictions on fx rates quoted by IMTOs

By Kadiri Abdulrahman

The Central Bank of Nigeria (CBN) continued with its efforts to salvage the falling value of the naira on Thursday with the removal of the allowable limit of exchange rate quoted by the International Money Transfer Operators (IMTOs).

The measure was announced in a circular signed by Dr Hassan Mahmud, the Director, the Trade and Exchange Department of the CBN, addressed to IMTOs and the general public.

According to Mahmud, the directive is in line with the CBN’s commitment to liberalise the Nigerian foreign exchange market,

“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 per cent to +2.5 per cent 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,” he said.

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 fx currencies for profit.

Meanwhile, Bureaux De Change in Abuja observed a “no sales” policy on Thursday due to acute scarcity of foreign exchange.

(NAN)