The Central Bank Of Nigeria had previously restricted certain items from accessing foreign exchange (FX) from the I&E window. These items were deemed “not valid for foreign exchange and could be produced in the country.” The items affected included rice, cement, palm kernel, meat and processed meat products, poultry, soap, cosmetics, and others.
However, the bank’s Director of Corporate Communications, Isa AbdulMumin, released a statement saying that the ban has been lifted. “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 43 items that were 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.
“The CBN reiterates that the prevailing Foreign Exchange (FX) rates should be referenced from platforms such as the CBN website, FMDCQ, and other recognized 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.