The Central Bank of Nigeria (CBN) has announced a policy shift allowing International Money Transfer Operators (IMTOs) to resume sending foreign transactions directly through official channels. This move is expected to potentially increase recorded remittance inflows. By permitting IMTOs to sell foreign exchange on the NAFEM window, the CBN aims to achieve several objectives:

1.  Boost FX supply through diaspora remittances
2.  Monitor all trades through the NAFEM window

3. Stabilize exchange rates
   4. Alleviate pressure on the parallel market.

CBN Governor, Cardoso emphasized that this approach is part of broader efforts to stabilize the naira, highlighting ongoing market monitoring, regulatory measures, and interventions aimed at curbing inflation and maintaining currency stability. The policy also includes provisions for same-day settlements and daily reporting to ensure transparency.

This move is exprected to yield several positive outcomes, predicting better days ahead for the FX market.