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Akinwande Soji-Ojo
The Central Bank of Nigeria (CBN) has lifted the foreign exchange (FX) restrictions it placed on importers of 43 items in 2015.
The apex bank disclosed this in a statement signed by its Director of Corporate Communications, Dr. Isa AbdulMumin, on Thursday.
This development means importers who were fomerly banned from purchasing foreign exchange for 43 specific items, as outlined in the 2015 Circular referenced, TED/FEFPC/GEN/O1/010, and its addendums, are now allowed to participate in the FX market to buy foreign currency for their transactions.
The apex bank noted that it would continue to promote orderliness and professional conduct by all participants in the FX 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, 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.
“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.
“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,” the statement added.
The 43 items are:
Rice
Cement
Margarine
Palm kernel
Palm oil products
Vegetable oils
Meat and processed meat products
Vegetables and processed vegetable products
Poultry and processed poultry products
Tinned fish in sauce (Geisha)/sardine
Cold rolled steel sheets
Galvanized steel sheets
Roofing sheets
Wheelbarrows
Head pans
Metal boxes and containers
Enamelware
Steel drums
Steel pipes
Wire rods (deformed and not deformed)
Iron rods
Reinforcing bars
Wire mesh
Steel nails
Security and razor fencing and poles
Wood particle boards and panels
Wood fiberboards and panels
Plywood boards and panels
Wooden doors
Toothpicks
Glass and glassware
Kitchen utensils
Tableware
Tiles-vitrified and ceramic
Gas cylinders
Woven fabrics
Clothes
Plastic and rubber products
Polypropylene granules
Cellophane wrappers and bags
Soap and cosmetics
Tomatoes/tomato pastes
Eurobond/foreign currency bond/ share purchases