CBN gives IMTOs ultimatum to use naira settlement accounts for diaspora inflows
The CBN mandated IMTOs to use naira settlement accounts by May 1st to increase transparency and boost forex liquidity.Summary
The Central Bank of Nigeria (CBN) has instructed all International Money Transfer Operators (IMTOs) to utilize designated naira settlement accounts held in commercial banks for all diaspora remittance transactions, effective May 1st. This directive, outlined in a circular signed by Musa Nakorji, director of the trade and exchange department, aims to enhance oversight, transparency, and liquidity within the official foreign exchange market. IMTOs are permitted to use existing or newly opened accounts, even operating multiple accounts across different banks, but all inflows and proceeds from foreign exchange conversions must be credited solely into these designated accounts. The CBN emphasizes that this measure will strengthen the monitoring and traceability of diaspora remittances, a vital source of foreign exchange for Nigeria. Furthermore, the CBN requires IMTOs to use real-time rates from Bloomberg BMatch when pricing transactions, ensuring consistent and transparent exchange rates.
(Source：21st Century Chronicle)