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Nigeria’s Forex Inflow Through IMTOs Reaches $1.07 Billion in Three Months
Nigeria Forex Inflow Hits $1.07 Billion: Forex inflows from International Money Transfer Operators (IMTOs) surged by 38.86 percent to $1.07 billion in the first quarter of 2024. Additionally, the previous quarter in the previous year was $770.23 million.
This increment was revealed in the Central Bank of Nigeria’s quarterly statistical bulletin for the first quarter of 2024.
Nigeria Forex Inflow Hits $1.07 Billion
The breakdown of the inflows shows that in January, IMTOs recorded $383.04 million, followed by a dip to $322.83 million in February, and a rebound to $363.70 million in March.
Also, compared to the last quarter of 2023, inflows grew by 10.74 percent.
The apex bank also revealed that it had granted approvals-in-principle to 14 new IMTOs, to help increase the sustained supply of foreign exchange in the official market.
The CBN Governor, Dr Olayemi Cardoso, said that the recent approval of licenses for 14 IMTOs was expected to improve competition and lower the cost of transactions, thus attracting more remittances through formal channels.
He said, “Nigeria Forex Inflow Hits $1.07 Billion. Over the years, reports from the World Bank have highlighted Nigeria’s significant remittances from the diaspora, which are estimated to represent about six percent of our GDP.”
Also Read: Nigeria’s Central Bank Broadens Forex Access for International Money Transfer Operators
“Recognizing this, the Central Bank has developed a strategy to engage the IMTO sector, which plays a critical role in these inflows.”
New IMTOs Granted Access To Sell Foreign Exchange
According to the CBN, the eligible IMTOs will now have access to the official window to sell foreign exchange.
The apex noted, “The bank has implemented measures that will enable eligible International Money Transfer Operators to access NGN liquidity at the CBN window. Nigeria Forex Inflow Hits $1.07 Billion.”
“Also, these measures are aimed at widening access to local currency liquidity for the settlement of diaspora remittances.
“Therefore, eligible IMTO operators will be able to access the CBN window directly or through their authorized dealer banks to execute transactions for the sale of foreign exchange in the market.”
This strategic initiative also reveals the apex bank’s commitment to enhancing the flow of foreign exchange into the country. Consequently, it stabilizes the naira and supports economic growth.
