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The Central Bank of Nigeria (CBN) has lifted forex restrictions on 43 items and vowed to intervene in the foreign exchange market as deemed fit.
The announcement was contained in a statement signed by the apex bank's Director of Corporate Communications, Isa AbdulMumin, on Thursday, October 12, 2023.
This is coming eight years after the CBN under Godwin Emefiele banned the 43 items from accessing forex exchange from the Investors and Exporters window.
The apex bank had claimed at the time that the items were not valid for foreign exchange because they could be produced in the country. The affected items include rice, cement, palm kernel, meat and processed meat products, poultry, soap, and cosmetics, among others.
But the CBN said on Thursday that the decision has been reversed.
It also promised to intervene in the Nigerian foreign exchange market from time to time to boost liquidity.
“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 statement read in part.
“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,” AbdulMumin noted.
“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.