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Foreign Exchange Unification Spurs $4.18 Billion in Remittances – Cardoso

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The impact of the unified foreign exchange policy is becoming evident with remittance inflows through International Money Transfer Operators (IMTOs) rising by 79.4% from $2.33 billion in the first quarter of 2023 to $4.18 billion in the first quarter of 2024.

Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, disclosed this at the Monetary Policy Stakeholders Forum held in Abuja on Thursday.

“Beyond monetary policy, the bank undertook critical reforms to strengthen the financial system and ensure macroeconomic stability:

“Unified multiple exchange rate windows to enhance efficiency in the FX market.

“This reform yielded tangible results, with remittances through International Money Transfer Operators (IMTOs) rising 79.4 percent in the first three quarters of 2024 to US$4.18 billion, compared to US$2.33 billion in the same period of 2023.”

The CBN’s foreign exchange unification policy, which was introduced to eliminate multiple exchange rate windows, has been credited with boosting investor confidence and increasing forex liquidity. The reform aligns with broader efforts to enhance the efficiency of Nigeria’s foreign exchange market, curb speculative activities and ensure transparent price discovery.

Mr. Cardoso explained that the Monetary Policy Stakeholders Forum serves as a strategic platform for in-depth discussions on monetary policy formulation and implementation.

“Unlike broader economic conferences, our discussions here are designed to address monetary policy challenges with precision, offering evidence-based insights to enhance policy effectiveness.”

The surge in remittances showed growing confidence in the reformed foreign exchange framework and reinforces expectations that Nigeria’s forex market will continue to stabilize under the CBN’s policy direction.

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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