“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,” CBN director of corporate communications Isa AbdulMumin stated in the document.
“All 43 items previously restricted by the 2015 Circular referenced TED/FEM/FPC/GEN/01/010 and its addendums are now permitted to purchase foreign exchange in the Nigerian Foreign Exchange Market.” The CB is committed to expedite work with existing participants to clear the FX backlog and will maintain engagement with stakeholders to address the issue.”
The following are the 43 goods that have been reinstated to the official foreign exchange market:
Rice, cement, margarine, palm kernel/palm oil products/vegetable oils, meat and processed meat products, vegetables and processed vegetables Private Airplanes/Jets, Indian Incense, Tinned Fish In Sauce (Gelsha)/Sardines, 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 and Reinforcing Bars, Wire Mesh, Steel Nails, Security and Razor Wire, Wood Particle Boards and Panels, Wood Fiber Boards and Panels, Plywood Boards and Panels, Wooden Doors.
Toothpicks, glass and glassware, kitchen utensils, tableware, vitrified and ceramic tiles Textiles, Woven Fabrics, Clothes, Plastic and Rubber Products, Cellophane Wrappers, Soap and Cosmetics, Tomatoes/Tomato Pastes, Eurobond/Foreign Currency Bond/Share Purchases, Milk, Maize.
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On July 1, 2015, the CBN restricted the availability of foreign exchange to the importation of 41 commodities that might be produced competitively within the economy.
The central bank’s reasoning for this step is to increase liquidity in the Nigerian Foreign Exchange Market and to provide periodic interventions, with the intention of diminishing these interventions as market liquidity improves.
However, the CBN stated that under the new rules, it will advocate the ‘Willing Buyer – Willing Seller’ principle, highlighting its commitment to a market-driven exchange rate system.
The central bank stated that it is dedicated to expediting efforts to clear the FX backlog with existing participants and would continue to consult with stakeholders on the matter.
It further reiterates that current FX rates should be referred to from platforms such as the website, FMDQ, and other recognized or designated trading systems in order to enhance price discovery, transparency, and credibility in FX rates.
According to the statement, one of the CBN’s goals is to create a single foreign exchange market. “Consultation with market participants is ongoing to achieve this goal,” the Central Bank added.
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