CBN Lifts FX Restrictions on 43 Items, Promises More Liquidity
The Central Bank of Nigeria (CBN) has announced a major policy shift by lifting the foreign exchange restrictions on 43 items that were banned in 2015.
The move is aimed at boosting liquidity in the FX market and allowing market forces to determine exchange rates.
The CBN’s spokesperson, Isa Abdulmumin, disclosed this on Thursday in Marrakech, where he reiterated the apex bank’s commitment to ensuring orderliness and professional conduct by all market participants.
He said importers of the 43 items, which include margarine, rice, cement, iron rods, roofing sheets, and wheelbarrows, among others, can now purchase foreign exchange in the Nigerian Foreign Exchange Market.
He also said the CBN would continue to intervene in the market from time to time to enhance price stability and clear the FX backlog.
He added that as market liquidity improves, these interventions would gradually decrease. He said the CBN’s goal is to achieve a single FX market and consultation is ongoing with stakeholders to realize this objective.
He advised the public to reference the prevailing FX rates from credible platforms such as the CBN website, FMDQ, and other recognised or appointed trading systems. He said this would promote price discovery, transparency, and credibility in the FX rates.
The CBN had imposed foreign exchange restrictions on 43 items in 2015 under the leadership of Godwin Emefiele, as part of its efforts to conserve foreign reserves and stimulate local production. The policy had been criticized by some stakeholders as counterproductive and detrimental to economic growth.
(NAN)
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