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CBN removes 43 items from FX restriction, promises to fix forex crisis

The Central Bank of Nigeria (CBN) has removed the 43 items from foreign exchange (FX) restrictions.

Dr Olayemi Michael Cardoso, acting governor of the Central Bank of Nigeria (CBN)
Dr Olayemi Michael Cardoso, acting governor of the Central Bank of Nigeria (CBN)

Abuja, Nigeria

The Central Bank of Nigeria (CBN) has removed the 43 items from foreign exchange (FX) restrictions.

The apex bank under former governor Godwin Emefiele previously prohibited the 43 items from accessing the FX.

The bank’s director of corporate communications, Isa Abdulmumin, disclosed the development in a statement on Thursday.

According to the statement, the CBN is committed to ending the foreign exchange crisis in the country.

Abdulmumin said the apex bank is working towards an FX backlog with existing participants and will continue dialogue with stakeholders to address the issue.

“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 statement reads.

“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, 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.”

“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. Participants and the general public are to be guided by the above,” CBN stated.

Recall that in June, a few days after the swearing-in of President Tinubu, the CBN announced the floating of the Naira at the forex market.

A policy decision that has subjected the country’s currency to further depreciation against the dollar.

As of Wednesday, the naira exchanged at N776.8/$1 at the official I & E forex window while it was N1040/$1 at the parallel (black) market.

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