CBN Lifts Forex Restrictions On Rice, Cement, Building Materials, Toothpicks, Others

The Central Bank of Nigeria (CBN) has finally lifted the foreign exchange restrictions it placed on the importation of 43 items, including rice, cement, and some building materials, among others.

Naija News reports that after imposing foreign exchange restrictions, the apex bank announced in a statement signed by the director of corporate communications of the bank, Dr Isa AbdulMumin, said a significant change has been made in the foreign exchange market policy.

It would be recalled that importers of these items were restricted from purchasing foreign exchange as outlined in the 2015 Circular referenced as TED/FEFPC/GEN/O1/010 and its addendums.

However, with this new policy, importers of such items are now allowed to participate in the Nigerian Foreign Exchange Market to buy foreign currency for their transactions.

The items include Rice, cement, Margarine, Palm kernel, palm oil products and vegetable oils, meat and processed meat products and vegetables and processed vegetable products.

Others are: poultry and processed poultry products, tinned fish in sauce (Geisha)/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.

Also included on the list were: Wire mesh, Steel nails, Security and razor fencing and poles, Wood particle boards and panels, Wood fiberboards and panels, Plywood boards and panels, Wooden doors, Toothpicks, Glass and glassware, Kitchen utensils, Tableware, Tiles-vitrified and ceramic.

Textiles, Woven fabrics, Clothes, Plastic and rubber products, polypropylene granules, cellophane wrappers and bags, Soap and cosmetics, Tomatoes/tomato pastes, Eurobond/foreign currency bond/ share purchases, Piston crowns, Ball bearings, High voltage cables, Transformers/switch gears and Gas cylinders.

However, in the newly issued statement, the CBN explained that it is putting plans in place to address the existing backlog of foreign exchange transactions.

AbdulMumin submitted that  “The CBN reiterates 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.

”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/FEFPC/GEN/O1/010 and its addendums are now allowed to purchase foreign exchange in the Nigerian Foreign Exchange Market.

“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. Participants and the general public are to be guided by the above.