BREAKING: CBN restores 43 items restricted from FX, vows to clear forex backlog

The Central Bank of Nigeria, CBN, on Thursday restored the
43 items previously prohibited from access to foreign exchange (FX).

Isa AbdulMumin, Director of Corporate Communications at CBN,
disclosed in a statement on Thursday.

The apex reiterated its commitment to ending the foreign
exchange crisis.

It added that it is working towards an FX backlog with
existing participants and will continue dialogue with stakeholders to address
the issue.

According to the statement, “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 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.

“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.”

“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”,
it stated.

Recall that since June 14 when CBN floated the Naira at the
forex market, the country’s currency has continued to depreciate against the
dollar.

While the Naira exchanged at N776.8/$1 at the official forex
window on Wednesday, the parallel market stood at N1040/$1.