CBN Lifts Forex Ban on 43 Items, Commits to Boosting FX Market Liquidity

In a significant development, the Central Bank of Nigeria (CBN) has announced the removal of foreign exchange restrictions on the importation of 43 specific items. This move underscores the CBN’s commitment to enhancing liquidity in the foreign exchange market.

According to Dr. Isa Andulmumin, Director of Corporate Communications at the CBN, importers can now access foreign exchange for the 43 previously restricted items, as outlined in the 2015 Circular referenced TED/FEM/FPC/GEN/01/010 and its subsequent addendums.

The CBN emphasizes its dedication to fostering orderliness and professionalism among all participants in the Nigerian Foreign Exchange Market, allowing market forces to dictate exchange rates through a “Willing Buyer – Willing Seller” principle.

To ensure transparency and credibility in foreign exchange rates, the CBN suggests referencing the prevailing FX rates from platforms such as the CBN website, FMDQ, and other recognized trading systems. This initiative aims to promote price discovery and enhance overall market transparency.

In line with its responsibility to maintain price stability, the CBN will intervene in the Nigerian Foreign Exchange Market as needed to boost liquidity. As market liquidity improves, these interventions will be gradually scaled down.

Furthermore, the CBN remains committed to addressing the existing backlog of foreign exchange with active market participants, and it is engaging in ongoing consultations with stakeholders to achieve a single FX market.

Participants and the general public are urged to adhere to the guidelines provided by the CBN to ensure a smooth transition in this new foreign exchange landscape. This move is expected to have a significant impact on the Nigerian economy, facilitating trade and economic growth.