CBN Reverses Forex Ban on 43 Items, Focuses on Enhancing Market Liquidity

The Central Bank of Nigeria (CBN) has decided to lift the foreign exchange restrictions on the importation of 43 specific items, emphasizing its dedication to bolstering liquidity within the foreign exchange market.

In a statement released by Dr. Isa Andulmumin, the Director of Corporate Communications at the CBN, it was announced that “Importers of all the 43 items previously subject to restrictions as per the 2015 Circular referenced TED/FEM/FPC/GEN/01/010 and its subsequent updates are now permitted to access foreign exchange in the Nigerian Foreign Exchange Market.”

The CBN underscores its commitment to promoting orderliness and professionalism among all participants in the Nigerian Foreign Exchange Market. It aims to allow market dynamics to dictate exchange rates, following the principle of a “Willing Buyer – Willing Seller.”

The CBN also reaffirms that the current Foreign Exchange (FX) rates should be sourced from platforms like the CBN website, FMDQ, and other recognized or designated trading systems, with the intent to enhance price discovery, transparency, and the credibility of FX rates.

As part of its mandate to ensure price stability, the CBN will infuse liquidity into the Nigerian Foreign Exchange Market through periodic interventions. As market liquidity improves, these interventions by the CBN will gradually decrease.

The decision to permit the purchase of foreign exchange for all 43 items, previously subject to restrictions under the 2015 Circular (TED/FEM/FPC/GEN/01/010 and its subsequent addendums), is aimed at fostering an open and competitive foreign exchange market.

The CBN is committed to expeditiously addressing the backlog of foreign exchange with existing market participants and is actively engaging in discussions with stakeholders to resolve this issue. The CBN has a strategic objective of achieving a unified FX market, and consultations are ongoing with market participants to realize this objective.

All participants and the general public are advised to follow the guidance provided above.