CBN Lifts Forex Restrictions on Rice, Toothpicks, Cement 40 Other items Banned by Emefiele
The Governor of Central Bank of Nigeria (CBN), Olayemi Cardoso has lifted the foreign exchange restrictions it placed on importers of 43 items including Rice, Toothpick and Cement eight years ago.
The former CBN Governor, Godwin Emefiele during the administration of President Muhammadu Buhari had placed restriction on access to the official foreign exchange market for the importation of some 43 items before the removal by government of President Bola Ahmed Tinubu.
In a statement signed by CBN’s Director of Corporate Communications, Dr. Isa AbdulMumin, the bank said this is a significant change to the foreign exchange market policy.
According to the central bank, the action will boost liquidity in the Nigerian Foreign Exchange Market and intervene from time to time, stating that interventions will decrease as liquidity improves.
In a circular in June 2015, the CBN published a list of imported goods and services that will not be eligible for foreign exchange in the Nigerian foreign currency market. The list which was originally 41 was updated to include two more items.
PRNigeria reports that the list of the items include: Rice, Cement, Margarine, Palm kernel, Palm oil products, Vegetable oils
Meat products, Vegetables products,
Poultry products and Tinned fish in sauce (Geisha)/sardine.
Other include: Cold rolled steel sheets, Galvanized steel sheets, Roofing sheets, Wheelbarrows, Head pans, Metal boxes, Enamelware, Steel drums, Steel pipes
Wire rods, Iron rods, Reinforcing bars, Wire mesh, Steel nails, Security and razor fencing and poles, Wood particle boards,
Wood fiberboards, Plywood boards, Wooden doors and Toothpicks.
Others are Glass and glassware, Kitchen utensils, Tableware, Tiles-vitrified and ceramic, Gas cylinders, Woven fabrics, Clothes, Plastic and rubber products
Polypropylene granules, Cellophane, wrappers and bags, Soap and cosmetics Tomatoes/tomato pastes, Eurobond/foreign currency bond/ share purchases.
The statement by CBN assured that the apex bank will continue to intervene at the official foreign exchange market to meet the rising demand.
Although the value of the naira has remained stable at around N760-N770 to the dollar at the official end of the market, the demand pressure at the parallel market had seen it spiral to over N1,030 to the dollar as at Wednesday.
The statement said, “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 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.”
