Cbn Pegs Bureau De Change Forex Sale At $5,000

The Central Bank of Nigeria (CBN) has pegged the maximum amount of foreign exchange (forex) that can be sold per transaction at $5,000 or its equivalent. It expanded dealings at bureaux de change (BDCs) to include education remittance, and utilities, besides selling basic travel allowance. All are subject to minimum documentation, the CBN announced at the weekend. The directive takes effect from December 1, 2006. "This is in addition to granting them access to the official window of the foreign exchange market as well as allowing them to act as brokers," Obadiah Mailafia, CBN Deputy Governor (Economic Policy), explained at the launch of the revised foreign exchange manual in Lagos. The review is in line with the policy reforms of the government. This is the third time the manual is being revised since the enactment of the Foreign Exchange (Monitoring and Miscellaneous Provisions) Act 17 of 1995, following the repeal of the forex market in September 1986. But it is the first time it is being codified in a manual; which defines key words such as demurrage, destination inspection scheme, currency swap transactions and Wholesale Dutch Auction System (WDAS). Said Mailafia: "All imports … shall be accompanied with the following documents: combined certificate of value and origin (CCVO); packing list; manufacturer’s certificate; and shipped/clean on board bill of lading/airway bill/roadway bill." He appealed to operators, especially authorised dealers and buyers "to implement the provisions of the revised manual religiously," as the task of developing the economy is collective. He warned that while liberalisation provides a level playing field for operators, it should not be taken as the absence of rules. Operators are to seek clarification from the CBN where a transaction is not clearly stated in the manual. "A free market economy has to have rules and regulations. The corollary to a free market is effective and efficient regulation, which requires adherence to the rule of law. It is not meant to hamstring the market, but to create an even playing field and ensure responsibility. Exercise the freedom responsibly for the sake of the system and imbibe international best practice in the spirit of partnership." Mailafia challenged all to observe the "Know-Your-Customer (KYC) and corporate governance in all transactions and operations," and stressed the need for self regulation. He expressed the hope that the manual would guide operators into the foreseeable future and urged them to make it their best companion. - independent