CBN lifts Forex Ban on 43 Items, set to Intervene in FX Market

The Central Bank of Nigeria (CBN) announced the lifting of the 43-item forex embargo and pledged to occasionally intervene in the FX market.

The items had been prohibited from getting FX from the I&E window by the apex bank in 2015 because they were “not valid for foreign exchange and could be produced in the country.” Among the products affected include rice, cement, palm kernel, meat and meat products, poultry, soap, and cosmetics.

Isa AbdulMumin, the bank’s director of corporate communications, claimed in a statement on Thursday that the ban had been lifted.

According to him, “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.

“Importers of all the 43 items previously restricted by the 2015 Circular referenced TED/FEMFPC/GEN/O1/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market.”

Speaking further, he said, “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, FMDCQ, 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 has set as one of its goals the attainment of a single FX market. Consultation is ongoing with market participants to achieve this goal,” CBN added.