FX: CBN lifts restriction on 43 items

CBN, FOREX, Policy
Dr. Olayemi Cardoso CBN Governor

The Central Bank of Nigeria (CBN) has restated its commitment to boost liquidity in the Foreign Exchange (FX) market.

CBN’s Director, Corporate Communications, Dr Isa AbdulMumin, made this known on Thursday in Marrakech.

AbdulMumin also announced that importers of all the 43 items previously restricted since 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.