THUR, OCT 12 2023-theGBJournal| The Central Bank of Nigeria (CBN) has lifted the ban on 43 items imposed under former CBN Governor, Godwin Emefiele.
”Importers of all 43 items previously restricted by the 2015 Circular referenced TEDFEM/FPC/GEN/01/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market,” the CBN said in a circular Thursday.
The apex bank said the move will boost liquidity in the Nigerian foreign exchange market and aid intervention from time to time and, adding that the interventions will decrease as liquidity improves.
The CBN reiterated that it has set one of its goals as the attainment of a single FX market, noting that consultation is ongoing with market participants to achieve this goal.
”This is a welcome move by the CBN. It’s another market-friendly step towards unified exchange rates. It should reduce pressure on the naira in the parallel (BDC) market – where importers of those 43 items had to access US dollars instead,” says Charlie Robertson, Head of Macro Strategy, FIM Partners UK Ltd in a note to theGBJournal.
”It might even be anti-inflationary, as those 43 products included rice, meat and vegetables – which had to be sourced at N1,000.
There is still more to do. To reduce FX shortages in the official FX market, the CBN might also need to signal that commercial banks can offer a weaker naira rate for US$, to help increase the supply of dollars from current holders of US dollars (Nigerians and foreign). Higher interest rates would help in that regard,” he added.
The apex bank said it will continue to promote orderliness and professional conduct by all participants in the Nigerian foreign exchange market to ensure market forces determine rates on willing buyer and willing seller principle.
It insisted the that the prevailing foreign exchange 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 market.
The List of the previously banned items
1. Rice
2. Cement
3. Margarine
4. Palm kernel
5. Palm oil products
6. Vegetable oils
7. Meat and processed meat products
8. Vegetables and processed vegetable products
9. Poultry and processed poultry products
10. Tinned fish in sauce (Geisha)/sardine
11. Cold rolled steel sheets
12. Galvanized steel sheets
13. Roofing sheets
14. Wheelbarrows
15. Head pans
16. Metal boxes and containers
17. Enamelware
18. Steel drums
19. Steel pipes
20. Wire rods (deformed and not deformed)
21. Iron rods
22. Reinforcing bars
23. Wire mesh
24. Steel nails
25. Security and razor fencing and poles
26. Wood particle boards and panels
27. Wood fiberboards and panels
28. Plywood boards and panels
29. Wooden doors
30. Toothpicks
31. Glass and glassware
32. Kitchen utensils
33. Tableware
34. Tiles-vitrified and ceramic
35. Gas cylinders
36. Woven fabrics
37. Clothes
38. Plastic and rubber products
39. Polypropylene granules
40. Cellophane wrappers and bags
41. Soap and cosmetics
42. Tomatoes/tomato pastes
43. Eurobond/foreign currency bond/ share purchases
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