LCCI tasks CBN on guidelines for new forex policy

Godwin Emefiele CBN Governor

Godwin Emefiele, CBN Governor

The Lagos Chamber of Commerce and Industry (LCCI) has appealed to the CBN to ensure transparency in the formulation of guidelines for its new flexible foreign exchange regime.

The Director-General of LCCI, Mr Muda Yusuf on Wednesday in Lagos said that any preferential treatment could cause distortion and abuse of the policy.

Yusuf said abuse could arise from creating special window for critical transactions with preferential rates.

“It can pose a risk to the entire system.

“We will like to be assured that the window for the critical transactions will be managed transparently and in a manner that it will not create distortions in the economy,” he said.

The CBN on May 24 said it would adopt a flexible foreign exchange regime to stimulate economic growth.

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It said the new guidelines on the management of foreign exchange market would soon be released.

Yusuf said the decision to refrain from monetary policy tightening would increase liquidity, boost investors’ confidence and attract more foreign exchange into the economy.

He urged the apex bank to review its ban on 41 items on foreign exchange exclusion list because they formed critical inputs of production for manufacturing companies.

He asked the CBN to allow export proceeds, capital and Diaspora remittances into the economy through the autonomous window at prevailing market rates.

Yusuf suggested that owners of such funds should have unhindered access to their funds.