The Central Bank of Nigeria (CBN) has announced the reversal of a 2015 circular that prohibited access to foreign exchange (FX) for 43 specific items.
Isa AbdulMumin, the Director of Corporate Communications at CBN, disclosed this news on Thursday, signaling a pivotal shift in the nation’s foreign exchange policy.
The CBN’s commitment to resolving the ongoing foreign exchange crisis was reaffirmed in this announcement.
The apex bank stated its intention to address the FX backlog by collaborating with current market participants and continuing dialogues with stakeholders to find effective solutions.
According to the statement issued by the CBN, importers can now purchase foreign exchange in the Nigerian Foreign Exchange Market for the previously restricted items.
The CBN intends to foster market-driven exchange rates by promoting orderliness and professional conduct among market participants, endorsing a “Willing Buyer – Willing Seller” principle.
The CBN also stressed the importance of referencing FX rates from recognized platforms such as the CBN website and FMDQ to enhance price discovery, transparency, and credibility in the FX market.
Furthermore, as part of its responsibility to ensure price stability, the CBN will intermittently intervene to boost liquidity in the Nigerian Foreign Exchange Market. These interventions will be scaled back as market liquidity improves.
The CBN has set a goal to establish a single FX market and is in consultation with market participants to achieve this objective.
This move comes as the Nigerian Naira has been facing a depreciation against the US dollar, with a significant gap between official and parallel market rates.
The CBN’s decision to lift the ban on these 43 items is a clear sign of the bank’s commitment to addressing Nigeria’s FX challenges and fostering a more transparent and efficient foreign exchange market.