In a bid to enhance foreign exchange dynamics, the Central Bank of Nigeria (CBN) has teamed up with International Money Transfer Organisations (IMTOs) to double remittance inflows into the country.
CBN Governor, Mr. Olayemi Cardoso, announced the partnership in Washington DC, stating that a Collaborative Task Force has been established to facilitate the process. This task force will report directly to his office.
Cardoso expressed confidence in the Nigerian naira, declaring it as the best-performing currency globally in April 2024. He emphasized that the apex bank has transitioned from addressing challenges to strategic planning, focusing on improving business ease, consolidating market gains, and promoting financial inclusion.
Representatives from domestic and international stakeholders in the Nigerian forex market attended the meetings, including Lemfi, Flutterwave, J.P. Morgan, and Visa.
Cardoso highlighted the significant improvement in the value of the naira in April and the robust activities in the FX market. However, he acknowledged ongoing challenges such as elevated inflation and security concerns.
To address these pressures, the CBN has implemented policy reforms and remains vigilant in monitoring the situation. Cardoso emphasized that the apex bank is committed to orthodox monetary policy and is encouraged by the positive results it has yielded.
He expressed optimism in the positive sentiment from portfolio investors, adding that the CBN is working towards ensuring a stable exchange rate.
Nigeria’s Minister of Finance, Mr. Wale Edun, corroborated Cardoso’s claims, stating that discussions with investors were fruitful and expressed their intention to partner with Nigeria.
The objectives of the CBN-IMTO partnership include reducing transaction costs associated with remittances, doubling remittance inflows through formal channels, and standardizing compliance processes. CONTINUE READING
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