The Central Bank of Nigeria, CBN, is set to license 20 new International Money Transfer Operators, IMTOs, to handle an estimated $21 billion annual Diaspora remittances into the country.
The apex bank decided to increase the number of IMTO operators after it discovered the positive impact their operations were having on its drive to stabilise the exchange rate, The Nation learnt on Monday, October 17.
President, Bureau De Change Operators of Nigeria, ABCON, Aminu Gwadabe said the liberalisation of the foreign exchange market and previous licensing of more IMTOs, had helped to narrow the gap between official and parallel market rates.
The ABCON Boss said the CBN increased the rate at which funds can be bought from the IMTOs, which was at N375 to a dollar last week, to N381 this week.
“The CBN’s policy on IMTOs and Diaspora remittances is working. By increasing the rate at which dollars are bought from the IMTOs, more Nigerians in Diaspora are now sending more dollars home,” he said.
“I believe the attractive rate the CBN is paying IMTOs will boost Diaspora cash inflow into the country and will force the dollar rates against the naira down,” Gwadabe added.
The CBN had in August 31, licensed 11 IMTOs. The new entrants joined Western Union, MoneyGram and Ria, which were earlier cleared by the CBN.
The new operators are Trans-Fast Remittance LLC; WorldRemit Limited, UAE Exchange Centre LLC; Wari Limited, Homesend S.C.R.L, Small World Financial Services Group Limited and Weblink International Limited. Others are Cash Pot Limited, DT&T Corporation Limited, Fiem Group LLC DBA Ping Express and CP Express Limited.
In a statement announcing the new operators, the CBN Acting Director, Corporate Communications, Isaac Okorafor, said the policy shift was in furtherance of efforts to liberalise the forex market, ensure liquidity and make foreign exchange more readily available to low end users.
