Importation: CBN reiterates stance on FX access, says ‘status quo remains on 43 non-eligible items’

The Central Bank of Nigeria (CBN) has reiterated its stance on access to foreign exchange (FX) on the official window for the importation of some goods.

The regulator spoke in a tweet on Friday while highlighting some operational changes in the country’s FX market in line with recent developments.

In 2015, the apex bank announced plans to stop providing FX for the importation of 43 items (including rice, meat, and fish) — an initiative intended to boost local production and conserve the nation’s FX reserve.

In the tweet on Friday, the CBN said the 43 items remain ineligible to receive dollars for their importation.

“The status quo remains on the 43 non-eligible items,” the apex bank said.

“The items are not permitted to be funded from the I&E window.”

Understanding the Operational Changes to the Foreign Exchange (FX) Market 1/3 pic.twitter.com/kNIhH7GIsw

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— Central Bank of Nigeria (@cenbank) June 16, 2023

The regulator’s statement was necessitated by its recent unification of all segments of Nigeria’s FX market, and the floating of the local currency.

The policy means that all FX windows are now collapsed into the investors and exporters (I&E) window, the CBN said.

“This means all eligible FX transactions shall only be done via the I&E window, all other windows cease to exist,” the CBN said.

“The I&E market functions by a willing buyer, willing seller system, where an entity with demand for FX seeks out another entity with FX to sell at an agreed price through an authorised dealer.

“In this model, rates are usually agreed by both parties.”