By Momodu Favour

The Central Bank of Nigeria has introduced new foreign exchange (FX) directives for International Money Transfer Operators (IMTOs) as part of ongoing reforms aimed at improving transparency, efficiency, and confidence in Nigeria’s FX market.

The apex bank said the move is designed to strengthen the country’s remittance framework and ensure better pricing and accountability in transactions involving foreign exchange inflows.

Under the new guidelines, IMTOs are required to channel all foreign exchange proceeds through authorised dealers, including banks and approved Bureau De Change operators.

This, according to the CBN, will help deepen participation in the official FX market and reduce reliance on informal channels.

In a significant policy shift, the CBN also directed operators to align their exchange rates with real-time market prices available on Bloomberg’s BMatch platform. The platform is to serve as a benchmark for determining exchange rates in transactions with customers and authorised dealers, a move expected to enhance price discovery and reduce information asymmetry in the market.

The bank further emphasized strict compliance with anti-money laundering (AML) and counter-financing of terrorism (CFT) regulations. IMTOs are also mandated to maintain proper documentation and records for audit and regulatory review.

According to the regulator, the directive forms part of broader efforts to rebuild trust in Nigeria’s foreign exchange system, attract more remittance inflows through official channels, and ensure a more transparent and stable market environment.

The latest measures build on earlier reforms introduced in January 2024, as the CBN continues to implement policies aimed at strengthening the FX ecosystem and improving overall market efficiency.