Emeka Okoroanyanwu
The Central Bank of Nigeria (CBN), on Thursday, announced the lifting of the ban previously placed on 43 items that were denied foreign exchange, saying the move was to boost liquidity in the foreign exchange market.
The ban imposed in 2015 was placed on such items as rice, cement, poultry and a host of others.
The policy which was introduced under former CBN Governor, Godwin Emefiele’s administration and was heavily criticized by stakeholders then was aimed at propping up the Naira.
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Dr. Isa Abdulmumin, Corporate Communication Director of the CBN said in a statement that the Central Bank of Nigeria (CBN) would continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market.
This, he said, was to ensure market forces determine exchange rates on a Willing Buyer – Willing Seller principle.
He said the CBN insists 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.
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As part of its responsibility to ensure price stability, the CBN, he said, will boost liquidity in the Nigerian Foreign Exchange Market by interventions from time to time.
According to him, “As market liquidity improves, these CBN interventions will gradually decrease.
“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 CBN, Isa said, is committed to accelerating efforts to clear the FX backlog with existing participants and will continue dialogue with stakeholders to address the issue.
He disclosed that the apex bank has set as one of its goals the attainment of a single FX market noting that consultation is ongoing with market participants to achieve the goal.