Forex: After eight years, CBN lifts ban on Rice, palm oil, 41 other items
…Promises to boost liquidity to ensure stability of prices
By Matthew Denis
The Central Bank of Nigeria (CBN) has restored access to forex to importers of rice, palm oil and 41 others items earlier prohibited.
This was disclosed in a statement signed by Isa AbdulMumin, Director of Corporate Communications on Thursday.
The statement added that importers of all the 43 items who were 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.
Mr AbdulMumin also announced that importers of all the 43 items previously restricted in 2015 are now allowed to purchase foreign exchange in the Nigerian FX market.
He said that the apex bank would continue to promote orderliness and professional conduct by all participants in the market.
According to him, the idea is to ensure that market forces determined exchange rates on a “Willing Buyer-Willing Seller” principle.
“The CBN reiterates that the prevailing FX rates should be referenced from platforms such as the CBN website, FMDQ, and other recognised or appointed trading systems.
“This is to promote price discovery, transparency, and credibility in the FX rates,” he said.
The Director said that as part of its responsibility to ensure price stability, the apex bank would boost liquidity in the Nigerian FX 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,” he said.
The 43 items previously banned include: Rice, Cement, Margarine, Palm kernel, Palm oil products, Vegetable oils, Meat and processed meat products, Vegetables and processed vegetable products, Poultry and processed poultry products, Tinned fish in sauce (Geisha)/sardine, Cold rolled steel sheets, Galvanized steel sheets,Roofing sheets, Wheelbarrows, Head pans, Metal boxes and containers, Enamelware, Steel drums, Steel pipes, Wire rods (deformed and not deformed), Iron rods, einforcing bars Wire mesh, Steel nails, Security and razor fencing and poles, Wood particle boards and panels, Wood fiberboards and panels, Plywood boards and panels, Wooden doors, Toothpicks, 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 and Eurobond/foreign currency bond/ share purchases.
