In the midst of the foreign exchange crisis, the Central Bank of Nigeria, or CBN, has released new guidelines for International Money Transfer Operators operating in Nigeria.
This was revealed by the top bank in a recent circular signed by Hassan Mahmud, the director of trade and exchange, and titled “Reviewed Guidelines of International Money Transfers in Nigeria.”
According to the apex bank, IMTOs are prohibited from doing any outbound transactions and are required to purchase foreign exchange for settlement from the domestic foreign exchange market.
Additionally, it forbade all banks and financial technology firms from acting as agents while still conducting business as international money transfer providers.
The CBN set the minimum share capital for IMTOs at $1 million for foreign investors and the same amount for native investors.
“All banks are prohibited from operating International Money Transfer services but can act as agents. Also, Financial Technology Companies are not allowed to obtain approval for IMTO.
“The permissible activities of International Money Transfer Operators shall include inbound international money transfer transactions only.
“The transactions shall be limited to the following activities: Cross-border personal money transfer services, such as money transfer services towards family maintenance; money transfer services in favour of foreigners visiting Nigeria, etc.
“The money transfer services shall target individual customers, and the transaction is on a ‘person to person’, ‘business to person’, and ‘business to business’ basis, which the CBN may review from time to time”, read the circular
The broad policy intervention by the CBN aims to stop the ongoing volatility in the nation’s foreign exchange market.
Remembers that on Wednesday, the CBN also released guidelines aimed at reducing the stockpiling and speculating of foreign exchange.
The Naira strengthened vs the US dollar on Wednesday as a result of the event.
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