In a significant development, the Central Bank of Nigeria (CBN) has announced the lifting of the ban on importers of 43 items that were previously restricted from accessing foreign exchange on its official platform. This decision aims to boost liquidity in the Nigerian foreign exchange market.
The CBN disclosed this decision in an official statement titled ‘CBN restates commitment to boost liquidity in forex market.’ The statement, signed by the Director of Corporate Communications, Isa AbdulMumin, confirmed that importers of the 43 previously restricted items, as outlined in the 2015 circular referenced TED/FEM/FPC/GEN/01/010 and its addendums, are now permitted to purchase foreign exchange in the Nigerian foreign exchange market.
The central bank emphasized its commitment to promoting orderliness and professional conduct among all Nigerian foreign exchange market participants. The goal is to ensure that exchange rates are determined by market forces, operating on the principle of a willing buyer and willing seller.
The statement also reinforced that prevailing foreign exchange rates should be referenced from recognized platforms such as the CBN website, FMDQ, and other appointed trading systems. This approach aims to enhance price discovery, transparency, and credibility in foreign exchange rates.
The CBN underlined its intent to boost liquidity in the Nigerian foreign exchange market through timely interventions. As market liquidity improves, the frequency of CBN interventions is expected to decrease gradually.
The CBN is dedicated to expediting efforts to clear the foreign exchange backlog with existing participants and will maintain an ongoing dialogue with stakeholders to address relevant issues. The statement concluded by noting the CBN’s goal of achieving a single foreign exchange market and ongoing consultations with market participants to achieve this objective. All participants and the general public are advised to adhere to the guidelines outlined in the statement.