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Forex Curbs: CBN Moves To Ease Importers' Plight - Business - Nairaland

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Forex Curbs: CBN Moves To Ease Importers' Plight by Adesiji77: 8:23am On Oct 26, 2015
In a bid to ease the burden of importers that had made commitments to their partners abroad before the June 23, 2015 circular that restricted access to forex for 41 items, the Central Bank of Nigeria (CBN) has stated that Letters of Credit established before the date of the circular can now be paid from the interbank forex market.

The CBN stated this in a circular dated October 23, 2015, signed by its Director, Trade and Exchange Department, Olakanmi Gbadamosi, a copy of which was posted on its website at the weekend.

The circular was titled: “Re: Inclusion of some imported goods and services on the list of items not valid for foreign exchange in the Nigerian foreign exchange markets.”

It was gathered that the central bank’s forex curb had made it difficult for Nigerian businesses to pay their vendors abroad, with huge debt owed to their credit guarantors abroad.
But the CBN in the latest circular stated that “confirmed/unconfirmed Letters of Credit established before the release of the circular on June 23, 2015, in respect of the 41 items excluded from the forex market can now be paid from the interbank foreign exchange market.”

It however stressed that the circular applies only to the Letters of Credit established for the 41 items prior to the date of the circular. It directed banks to render weekly return on the negotiated Letters of Credit to its Director, Trade and Exchange.

“For the avoidance of doubt, no bank or bureau de change is to provide forex for any of the items in respect of the Form ‘M’ established after June 23, 2015,” it added.

The CBN had in June officially stopped the sale of dollars for a list of 41 items as it seeks to reduce pressure on the naira as well as preserve the country’s external reserves. These items included rice, cement, margarine, palm kernel/palm oil products/vegetable oil, meat and processed meat products, vegetable and processed vegetable products, poultry –chicken, eggs, turkey - private airplanes/jet, Indian Incense, tinned fish in sauce - Geisha/Sardines, cold-rolled steel sheet and galvanised steel sheets. In addition, sourcing of forex for the importation of toothpicks, glass and glassware, kitchen utensils, tables, textiles, woven fabrics, clothes, plastic and rubber products, soap and cosmetic, tomatoes/tomato paste, had been banned.

http://www.thisdaylive.com/articles/forex-curbs-cbn-moves-to-ease-importers-plight/223764/ lalasticlala
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by LastSurvivor: 8:24am On Oct 26, 2015
You are not producing anything yet your banning everything.
Am not saying the ban is bad but very very I'll timed.

Imagine removing ban on the importation of rice that we are almost self sufficient in but banning glasses and kitchen utensils..
Something is wrong with somebody's brain..

24 Likes

Re: Forex Curbs: CBN Moves To Ease Importers' Plight by BlackrulesDworld(m): 8:25am On Oct 26, 2015
Ok
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by Nobody: 9:19am On Oct 26, 2015
LastSurvivor:
You are not producing anything yet your banning everything.
Am not saying the ban is bad but very very I'll timed.

Imagine removing ban on the importation of rice that we are almost self sufficient in but banning glasses and kitchen utensils..
Something is wrong with somebody's brain..

We produce glass and kitchen utensils in nigeria. Most of the items on that list are produced locally. There are only a few not currently produced locally but we have the capacity to. Example toothpick. Makes no sense importing toothpick. With the ban in place, individuals will be encouraged/forced to start producing them

12 Likes

Re: Forex Curbs: CBN Moves To Ease Importers' Plight by SLIDEwaxie(m): 9:28am On Oct 26, 2015
LastSurvivor:
You are not producing anything yet your banning everything.
Am not saying the ban is bad but very very I'll timed.

Imagine removing ban on the importation of rice that we are almost self sufficient in but banning glasses and kitchen utensils..
Something is wrong with somebody's brain..
them don forget spanner for inside your own brain.

All those things posted there, can't u get them here?

Na the govt go start production?

By the time sufferness wire your life, u go enter production of the needful.

You encourage production by banning those things u can produced locally

11 Likes

Re: Forex Curbs: CBN Moves To Ease Importers' Plight by damton(m): 10:19am On Oct 26, 2015
Good move by the CBN, as long as it favors the stimulation of growth and development of the economy .

4 Likes

Re: Forex Curbs: CBN Moves To Ease Importers' Plight by AYOdeji2102: 10:19am On Oct 26, 2015
Ok
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by Bonapart(m): 10:19am On Oct 26, 2015
Ok
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by jendhorlee(m): 10:21am On Oct 26, 2015
.

3 Likes 1 Share

Re: Forex Curbs: CBN Moves To Ease Importers' Plight by Nobody: 10:21am On Oct 26, 2015
Hmmm....more grace to their elbow just make Naira get more value and dollar to Naira should fall to $1= N100 at least

Re: Forex Curbs: CBN Moves To Ease Importers' Plight by satowind(m): 10:21am On Oct 26, 2015
Am a space booker










No mind me I just had elementary economics knoledge and don't understand dis post... But umunnaa man must coment nah.

Re: Forex Curbs: CBN Moves To Ease Importers' Plight by Chinaimporter: 10:22am On Oct 26, 2015
[size=14pt]i think say them no go fear now....God punish jesu.....satan be forever praised

[/size]
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by kennyman2000(m): 10:23am On Oct 26, 2015
Nice..
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by coldsummer: 10:23am On Oct 26, 2015
better. it is almost like these guys don't even think before they throw out policies.

the rate at which they are going, if they are not careful, they will cripple the economy and frustrate PMB.
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by Smartresult(f): 10:24am On Oct 26, 2015
the government should not blame this on importer alone,There are many participants in forex market than any other market, ranging from government via the central bank, banks and financial institution, hedgers and speculators.
The major participant in forex market are government and central banks, though the two are dependent on each other, most central bank operate based on government policy they work with federal or central government to keep the country currency at a certain value, some government prefer an independent central government, they function to maintain interest rate, keeping inflation rate at beeriest minimum level. They function to maintain a county’s foreign reserve at a certain amount to attain some goals. Some government works hand and hand with their central bank to maintain their currency value.
Commercial banks also participate in forex market either between one bank and the other or between banks and individuals who need foreign currency for travelling, commercial banks can carry out inter-bank forex transaction between each order through electronic brokerage syst
continue reading
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by donktrax(m): 10:24am On Oct 26, 2015
fy ok....that's a good one. but someone tell me when will ministers start work?
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by Nobody: 10:25am On Oct 26, 2015
.
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by Nobody: 10:26am On Oct 26, 2015
satowind:
Am a space booker










No mind me I just had elementary economics knoledge and don't understand dis post... But umunnaa man must coment nah.
clap 4 ya self
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by Nelsizzy(m): 10:27am On Oct 26, 2015
Even F0REST don dey affect Nigeria economy. Sai Buhari!
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by nastyesco(m): 10:28am On Oct 26, 2015
This emeifele man
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by free2ryhme: 10:30am On Oct 26, 2015
Good for the economy
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by joystickextend1(m): 10:34am On Oct 26, 2015
okay
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by iretiland: 10:46am On Oct 26, 2015
Who is running the Nigerian evonomy - is it the unqualify CBN Gov Emefiele or the economically unimformed President / VP ?

How does one protect the external reserve at the expense of unemployment/low productivity and no growth?
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by cele360: 11:14am On Oct 26, 2015
Govt without a vision, d blind leading d blind God help us, see their head like d Dullard head
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by repogirl(f): 11:16am On Oct 26, 2015
Trial and error government with no clear cut strategies! Tufia!! angry

And the gullible will keep swallowing bullshit!

2 Likes

Re: Forex Curbs: CBN Moves To Ease Importers' Plight by ril19(m): 11:16am On Oct 26, 2015
satowind:
Am a space booker










No mind me I just had elementary economics knoledge and don't understand dis post... But umunnaa man must coment nah.

Padi to koment nor be musto. Abi yu rid am anywia for NL like dat?
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by dannywest: 11:32am On Oct 26, 2015
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by Nobody: 11:33am On Oct 26, 2015
hmmm.... is this how buhari would make $1 = N1?
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by bookface: 11:34am On Oct 26, 2015
The central bank should not be making policies like this. This should be the job of the economic/finance minister.

The current policy is not sustainable in the long run. It appears that Emefiele is only playing short term and hoping that oil prices revert back to the good ol days of $105 per barrel. That's not going to happen.
Re: Forex Curbs: CBN Moves To Ease Importers' Plight by Ndyoo(m): 12:23pm On Oct 26, 2015
.

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