8 years after being banned on FX, CBN reintroduces 43 products

    8 years after it was first banned, the Central Bank of Nigeria (CBN) on Thursday allowed access to foreign exchange (FX) for the 43 products.

    The CBN’s director of corporate communications, Isa AbdulMumin, signed a statement disclosing this information.

    On July 1, 2015, the CBN limited the amount of foreign exchange that may be obtained to the importation of 41 goods that the country could produce competitively.

    The Nigerian Foreign Exchange Market now permits importers of all 43 commodities that were previously prohibited by the 2015 Circular mentioned TED/FEM/FPC/GEN/01/010 and its addenda to buy foreign currency.

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    The Apex bank stated that it will keep talking with stakeholders to resolve the matter and is dedicated to stepping up efforts to reduce the FX backlog with current participants.

    One of the CBN’s objectives, according to the statement, is to establish a single FX market. The Central Bank stated, “Consultation is ongoing with market participants to achieve this goal.”

    In order to guarantee that market forces decide exchange rates according to the Willing Buyer-Willing Seller concept, Nigeria’s Central Bank announced that it will keep encouraging orderliness and professional behaviour by all Nigerian foreign exchange market players.

    The CBN stresses that in order to encourage price discovery, transparency, and credibility in the FX rates, it is recommended that the current FX rates be consulted from sources such the website, FMDQ, and other approved or recognized trading systems.

    The CBN would occasionally intervene to increase liquidity in the Nigerian Foreign Exchange Market as part of its duty to maintain price stability. The CBN stated that these operations will progressively taper off as market liquidity increases.

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