- The CBN has restored the 43 items earlier banned by the previous administration
- With this new arrangement, importers can now purchase foreign exchange for their transactions
- The apex bank, however, noted that it will occasionally intervene to provide liquidity on the FX market
The limitations on foreign exchange that the Central Bank of Nigeria (CBN) imposed on importers of 43 commodities eight years ago have finally been abolished.
This was contained in a statement signed by Dr. Isa AbdulMumin, the bank's director of corporate communications.
The development follows an earlier report by Legit.ng that the CBN issued a clarification regarding foreign exchange (FX) access for importers of 43 items that were previously restricted from obtaining FX through the official window.
According to the apex bank, a substantial modification has been made to the foreign exchange market policy.
Full List: Importers of Rice, Cement, Clothes, 40 other items can now access forex at official rates
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This means that importers are now permitted to participate in the Nigerian Foreign Exchange Market to purchase foreign currency for their transactions.
The development contrasts the 2015 Circular referenced as TED/FEFPC/GEN/O1/010 and its addenda, which prohibited importers from doing so for 43 specific items.
CBN restates commitment to improve FX liquidity
The CBN stated that to ensure that market forces determine exchange rates by the Willing Buyer-Willing Seller concept, it will continue to encourage order and professional behavior by all participants in the Nigerian Foreign Exchange Market.
It also said to encourage price discovery, transparency, and credibility in the Foreign Exchange (FX) rates, the current FX prices should be cited from sources such as the CBN website, FMDQ, and other recognized or appointed trading systems.
As part of its duty to ensure price stability, the top bank said that it will occasionally intervene to provide liquidity in the Nigerian Foreign Exchange Market.
It, however, noted that as market liquidity increases, these CBN interventions will gradually decline.
Additionally, it pledged to step up efforts to involve current players in clearing the FX backlog. It also stated that it would keep talking to interested parties about the problems.
The CBN added that creating a unified FX market is one of its objectives. It stated that continued consultation with market players is taking place to accomplish this goal.
CBN Defends Naira With $5.78bn in 6 Months as Exchange Rates Hit N1,045 Per Dollar
Legit.ng had reported that the CBN defended the local currency via its intervention in the Forex market with a net sale of $5.78 billion in the first half of 2023.
Conversely, the CBN bought a total of $655.53 million in the market, according to the bank’s half-year financial market report released on its website on Tuesday, October 10, 2023.
When compared with the year before, the apex bank’s net Forex sales declined by 26.84% from $7.90 billion at the end of June 2022.