The Central Bank of Nigeria has ordered Deposit Money Banks and other authorised dealers in the foreign exchange market to allocate 60 per cent of their total forex purchases from all sources (interbank inclusive) to manufacturers.
The CBN, in a circular issued on Monday August 22, 2016, said the DMBs must sell 60 per cent of their forex to end users strictly for the purpose of importation of raw materials, plant and machinery.
In the circular, signed by the acting Director, Trade and Exchange Department, Mr. W.D. Gotring, the CBN said it took the decision following its review of returns on the disbursement of forex and observed that a negligible proportion of the forex sales were being channelled towards the importation of raw materials for the manufacturing sector.
The circular read, “Following the review of returns on the disbursement of foreign exchange to end users, it has been observed that a negligible proportion of foreign exchange sales are being channelled towards the importation of raw materials for the manufacturing sector”.
Against this background and in order to address the observed imbalance, authorised dealers are hereby directed to henceforth dedicate 60 per cent of total foreign exchange purchases from all sources (interbank inclusive) to end users strictly for the purpose of importation of raw materials, plant and machinery.
The balance of 40 per cent should be used to meet other trade obligations, visible and invisible transactions. For the avoidance of doubt, authorised dealers are to continue to publish weekly sales of FX to end users in the national newspapers and to render statutory returns on same to the CBN promptly. Please ensure compliance accordingly, until otherwise advised.