- The CBN has promised to sanction International Monetary Transfer Operators, including Western Union and MoneyGram
- The sanctions are aimed at addressing these issues and enforcing compliance with foreign exchange rate pricing
- This move comes in response to the continue depreciation of the naira against the dollar with the new rate at N950 in black markets
The Central Bank of Nigeria (CBN) has announced plans to sanction international money transfer operators (IMTOs) for breaching of foreign exchange (FX) rate pricing.
This was disclosed in a circular to all IMTOs dated September 13, 2023 and signed by W.J Kanya, for the director trade and exchange department of the CBN.
The circular outlined a series of sanctions for IMTOs floating CBN forex guidelines.
According to CBN's new guideline, the spread on buying and selling by BDC operators shall be within an allowable limit of -2.5 percent to +2.5 percent of the Nigerian foreign exchange market window weighted average rate of the previous day.
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CBN to sanction IMTOs
According to the circular, for flouting the rule, the sanctions include being compelled to sell their proceeds to the Central Bank of Nigeria, suspension from operations, and loss of operating license.
The CBN revealed that during its routine checks, it was observed that some IMTOs were operating and acting in breach of the circular.
The actions of the IMTOs included arbitrary rate quotes outside of permissible range and other sharp practices, in violation of extant regulations.
The circular reads:
“For the avoidance of doubt, International Money Transfer Operators are required to quote rate within the allowable limit of 2.5 percent to +2.5 percent around the previous day’s closing rate of the Nigerian Foreign Exchange Market for their transactions. “Going forward, any IMTO in breach of this specific regulation would face sanctions, including but not limited to being compelled to sell their proceeds to the Central Bank of Nigeria, suspension from operations and loss of operating license."
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Bureau de Change operator explains why naira sells for N950 per dollar
Naira to dollar value
Meanwhile, checks show that the Naira, on Thursday, September 14, 2023, exchanged at N955/$ in the black market.
While in the investors and exporters forex market, which is the official market, it closed trading at N780 per dollar.
Pastor Adeboye predicts naira's glorious days will return
In another report, the General Overseer of the Redeemed Christian Church of God, Pastor Enoch Adeboye, has predicted that the Naira will bounce back against the dollar.
Adeboye gave this prediction during his church’s monthly Thanksgiving service with the theme; ‘Uncommon Miracles’ on Sunday, September 3, 2023.
He told his congregation not to worry, assuring them that the naira's glorious days would return.
Source: Legit.ng
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