CBN: IMTO Inflows Increased by 47% to $2.33bn in Six Months

Data released by the Central Bank of Nigeria (CBN) showed that Inflows through International Money Transfer Operators (IMTOs) grew by 47 per cent to $2.33 billion in the first six months of 2024 from $1.58 billion in the same period of 2023.

This is coming at a time the CBN implemented policy measures that permits eligible IMTOs access to Naira liquidity at the official foreign exchange window.

Not long ago, the CBN instituted some policy measures to make the forex markets more efficient and increase remittance flows through formal channels.

In a circular signed by the acting Director of the Trade and Exchange Department, Dr W.J. Kanya, the apex bank said that the measure, which was effective immediately, would enable IMTOs to access naira liquidity at the official window, thus, enabling the timely settlement of diaspora remittances.

The apex noted, “The bank has implemented measures that will enable eligible International Money Transfer Operators to access NGN liquidity at the CBN window. These measures are aimed at widening access to local currency liquidity for the settlement of diaspora remittances.

“Therefore, eligible IMTO operators will be able to access the CBN window directly or through their authorized dealer banks to execute transactions for the sale of foreign exchange in the market.”

From the numbers released by the apex, it could be inferred that the country’s net foreign exchange inflows to Nigeria’s economy increased by 67.8 per cent to $27.6 billion in the first half of 2024 from $16.44 billion in 2023.

Figures from the CBN’s quarterly Economic Statistics revealed that the development was because of a 34.6 per cent increase in net inflows through autonomous sources and a 170 per cent increase in net forex inflow through the Central Bank of Nigeria in the same period.

The forex inflow to the economy grew in the period by 41.6 per cent to $47.73 billion in H1 2024, and from $33.7 billion in H1 2023.

Gross inflows through autonomous sources also grew by 47.6 per cent year-on-year to $31.15 billion in H1 24 from $21.16 billion in H1 23.