The Central Bank of Nigeria has reported a $172 million increase in direct remittance in one month.
Data from the CBN shows that remittances hit $138.56 million in January 2024, $39.14 million in February, $104.90 million in March, $193.31 million in April, and $365.44 million in May.
The data shows a 90% surge from April to May, hitting $365.44 million and a 163% increase, showing a significant growth in foreign currency inflows.
Experts say the development is positive for Nigeriaâs economy amid rising debt profile and challenges of revenue diversification.
According to reports, the increase shows the apex bankâs efforts to boost foreign currency remittance flows via formal channels.
The CBN announced that it had approved in principle 14 new International Money Transfer Operators to enhance remittances, an earlier report by TimesNow.com.ng says.
The move aims to streamline remittance processes, remove challenges, and encourage the bankâs commitment to boosting official channels.
Punch reports that in January this year, the financial institutions’ regulator removed the exchange rate cap earlier imposed by IMTOs to allow for more flexible currency quoting.
The adjustment was devised by revising operational guidelines and raising licensing fees for the operators, which shows CBNâs efforts to enhance the sector’s operational mechanisms and financial requirements.
Experts see the development as positive for the FX reserve and the Nigerian currency, the naira, saying the two will have some respite to adjust to market realities.
Financial analyst and forex trader Ishaya Ibrahim applauded the move, saying the development portends excellent news for the naira.
He reacted to a recent report that the apex bank has ended FX sales to Bureau de Change (BDC) operators.
TimesNow.com.ng previously reported the Central Bank of Nigeria (CBN) has asked authorized banks and International Money Transfer Operators (IMTOs) to pay all diaspora remittances in naira.
In a circular, W. J. Kanya, CBN’s acting director, noted that the instruction is part of its efforts to enhance the foreign exchange market’s efficiency and boost remittance flows through formal channels.
CBN also noted that these measures will access local currency liquidity to settle diaspora remittances promptly.
Proofread by Kola Muhammed, journalist and copyeditor at TimesNow.com.ng
Source: TimesNow.com.ng
