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CBN lifts forex ban on 43 restricted items

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The Central Bank of Nigeria, CBN, restored access to foreign exchange (FX) to 43 previously restricted commodities on Thursday.

CBN Director of Corporate Communications Isa AbdulMumin revealed in a statement on Thursday.

The apex bank reiterated its commitment to resolving the currency problem.

It also stated that it is working with existing participants to create an FX backlog and would maintain conversation with stakeholders to remedy the issue.

According to the statement, “Importers of all the 43 items previously restricted by the 2015 Circular referenced TED/FEM/FPC/GEN/01/010, and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market.

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“The Central Bank of Nigeria will continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market to ensure market forces determine exchange rates on a Willing Buyer – Willing Seller principle.

“The Central Bank of Nigeria reiterates that the prevailing Foreign Exchange (FX) rates should be referenced from platforms such as the CBN website, FMDQ, and other recognised or appointed trading systems to promote price discovery, transparency, and credibility in the FX rates.

“As part of its responsibility to ensure price stability, the CBN will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time. As market liquidity improves, these CBN interventions will gradually decrease.”

“The CBN is committed to accelerating efforts to clear the FX backlog with existing participants and will continue dialogue with stakeholders to address the issue.

“The CBN has set as one of its goals the attainment of a single FX market. Consultation is ongoing with market participants to achieve this goal. Participants and the general public are to be guided by the above”, it stated.

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Recall that the country’s currency has been weakening against the dollar ever since the apex bank floated the Naira on the foreign exchange market on June 14.

The Naira was trading at N776.8/$1 at the official forex window on Wednesday, but it was trading at N1040/$1 on the parallel market.

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