CBN Lifts Forex Ban on Rice, Cement, Poultry, 40 0ther Items
The Central Bank of Nigeria (CBN) has announced the removal of the forex ban on 43 items and has additionally committed to periodic interventions in the foreign exchange (FX) market.
This regulatory institution had initially enforced a stringent prohibition in 2015, preventing these items from obtaining FX through the I&E window.
Their rationale was founded on the belief that these goods were domestically producible and, therefore, did not warrant access to foreign exchange. Noteworthy among the affected items were rice, cement, palm kernel, various meat and meat products, poultry, soap, cosmetics, and an array of other commodities.
In an official statement, Isa AbdulMumin, the Director of Corporate Communications at the central bank, confirmed the revocation of this ban.
“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 Thursday statement read.
“Importers of all the 43 items previously restricted by the 2015 Circular referenced TED/FEMFPC/GEN/O1/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market.”
“The Central Bank of Nigeria (CBN) 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,” he added.
“The CBN reiterates that the prevailing Foreign Exchange (FX) rates should be referenced from platforms such as the CBN website, FMDCQ, 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 has set as one of its goals the attainment of a single FX market. Consultation is ongoing with market participants to achieve this goal,” CBN added.
