Forex Sale: CBN To Sanction Banks, BDCs That Flout Order | Independent Newspapers Limited
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Forex Sale: CBN To Sanction Banks, BDCs That Flout Order

Posted: Jun 25, 2015 at 1:20 am   /   by   /   comments (0)

By Obas Esiedesa,  Abuja


The Central Bank of Nigeria (CBN), on Wednesday in Abuja, further clarified its ban on sale of foreign exchange to importers of 41 items, warning banks and Bureaux de Change (BDC) operators of sanctions for violation.

The move is part of efforts to ensure tighter controls on the foreign exchange market and curb speculations on the naira to protect the nation’s dwindling reserves.

The affected items, including: 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 roiled steel sheet and galvanised steel sheets.

Also on the list are: Roofing sheets, wheel barrows, head pans, metal boxes and containers, enamelware, steel drums, steel pipes, wires, rods, wire mesh, steel nails, security and razor wire, wood particles boards and panels, wood fiber board and panels, plywood boards and wooden doors.

Addressing newsmen in Abuja, Godwin Emefiele, said the CBN Governor can be produced locally, noting that any importer who wants to continue importing the items should source forex from private sources.

Emefiele said that the huge importation cost is having serious drag on the country’s foreign reserve and creating massive unemployment.

This policy shift, he said, “is in line with our long held believe that Nigeria cannot attain it’s through potentials simply importing everything into the country.

“At some point in our lives we have to all decide that what we really want for our country. And I believe the time is now right for that deep and honest conversation”.

He noted that the CBN could no longer sit idly by and concentrate only on price and monetary stability, stressing that additional measures are required to identify productive sectors of the economy, to which credit would be channeled, while imposing proper monitoring and performance measures to ensure that the goals of increased employment and poverty reduction are attained.

He lamented that “despite Nigeria’s relatively impressive Gross Domestic Product (GDP) growth rate over the past seven years there seem to be an absence of a corresponding reduction in unemployment or poverty.