Sell 60% of forex to manufacturers- CBN orders banks
Tue Aug 23, 2016 09:46:am Finance
3.9K By Buchi Obichie
Individual banks (authorized dealers) have been ordered by the Central Bank of Nigeria, CBN, on Monday, to allocate 60% of their total Foreign Exchange purchases from all sources to manufacturers and 40% to other users for the purpose of trade and other obligations.
The CBN, in a circular titled "Foreign exchange sales to end users" signed by Acting Director, Trade and Exchange Department, W.D. Gotring said "Following the review of the returns on the disbursement of foreign exchange to end users, it has been observed that negligible proportion of foreign exchange sales are being channeled towards the importation of raw materials for the manufacturing sector.
"Against this background and in order to address the observed imbalance, the Authorised Dealers are hereby directed to henceforth dedicate at least 60 per cent of their total foreign exchange purchases from all sources (interbank inclusive) to end users strictly for the purposes of importation of raw materials, plant and machinery. The balance of 40 per cent should be used to meet trade obligations, visible and invisible transactions."
Gotring, further stated that the Authorised Dealers should continue to publish weekly sales of foreign exchange to end users in the national newspapers and to render statutory returns on same to the CBN promptly.
The CBN, in a circular titled "Foreign exchange sales to end users" signed by Acting Director, Trade and Exchange Department, W.D. Gotring said "Following the review of the returns on the disbursement of foreign exchange to end users, it has been observed that negligible proportion of foreign exchange sales are being channeled towards the importation of raw materials for the manufacturing sector.
"Against this background and in order to address the observed imbalance, the Authorised Dealers are hereby directed to henceforth dedicate at least 60 per cent of their total foreign exchange purchases from all sources (interbank inclusive) to end users strictly for the purposes of importation of raw materials, plant and machinery. The balance of 40 per cent should be used to meet trade obligations, visible and invisible transactions."
Gotring, further stated that the Authorised Dealers should continue to publish weekly sales of foreign exchange to end users in the national newspapers and to render statutory returns on same to the CBN promptly.
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