The Central Bank of Nigeria (CBN) has removed the allowable exchange rate limit quoted by the International Money Transfer Operators (IMTOs).

This is according to a circular signed by Hassan Mahmud, the CBN’s director of trade and exchange department, addressed to IMTOs and the general public.

According to Mr Mahmud, the directive is in line with the CBN’s commitment to liberalise the Nigerian foreign exchange market.

“IMTOs are hereby allowed to quote exchange rates for Naira payout to beneficiaries based on the prevailing market rates at the Nigerian foreign exchange market on a willing seller, willing buyer basis.

“For the avoidance of doubt, by this circular, the cap on allowable limit of -2.5 per cent to +2.5 per cent around the previous day’s closing rate of the Nigerian Foreign Exchange Market is hereby removed.

“Authorised dealers, IMTOs and the general public are hereby informed to note and comply accordingly,” he said.

CBN had earlier directed banks to sell their excess dollar stock to stabilise the exchange rate.

The CBN also cautioned the banks against hoarding excess foreign currencies for profit.

Meanwhile, bureaux de change in Abuja observed a “no sales” policy on Thursday due to acute scarcity of foreign exchange.

(NAN)