CBN lifts forex ban on toothpick, rice, 41 others

The Central Bank of Nigeria (CBN) said it has lifted the ban on importers of rice, cement, toothpick, wheel barrows and 39 others from accessing the foreign exchange market.

The bank’s director of corporate communications, Dr Isa Abdulmumin said the ban was lifted as part of moves to boost liquidity in the Foreign Exchange (FX) market.

AbdulMumin spoke Thursday in Marrakech, Morocco.

AbdulMumin said the importers of the hitherto banned items are now allowed to purchase foreign exchange in the Nigerian FX market.

He said that the apex bank would continue to promote orderliness and professional conduct by all participants in the market.

According to him, the idea is to ensure that market forces determine exchange rates on a “Willing Buyer-Willing Seller” principle.

“The CBN reiterates that the prevailing FX rates should be referenced from platforms such as the CBN website, FMDQ, and other recognised or appointed trading systems.

“This is to promote price discovery, transparency, and credibility in the FX rates,” he said.

The director said that as part of its responsibility to ensure price stability, the apex bank would boost liquidity in the Nigerian FX 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, ” he said.

Here is the complete list of items banned by CBN in June 2015 from accessing foreign exchange:

Rice, Cement, Margarine, Palm kernel/palm oil products/vegetables oils,
Meat and processed meat products, Vegetables and processed vegetable products, Poultry – chicken, eggs, turkey, Private airplanes/jets, Indian incense, Tinned fish in sauce (geisha)/sardines, Cold-rolled steel sheets

Galvanised steel sheets, Roofing sheets,Wheelbarrows,Head pans, Metal boxes and containers, Enamelware, Steel drums, Steel pipes, Wire rods (deformed and not deformed), Iron rods and reinforcing bars, Wire mesh, Steel nails, Security and razor wire

Wood particle boards and panels, Wood fibre boards and panels, Plywood boards and panels, Wooden doors, Furniture, Toothpicks, Glass and Glassware, Kitchen utensils, Tableware, Tiles – vitrified and ceramic,

Textiles, Woven fabrics, Clothes

Plastic and rubber products, polypropylene granules, cellophane wrappers, Soap and cosmetics

Tomatoes/tomato paste, Eurobond/foreign currency bond/ share purchases, Dairy/milk and Maize