Investors And Exporter Window Records $53.02m Turnover

The Investor & Exporter forex window recorded a turnover of $53.02m following the Central Bank of Nigeria’s forex ban lift on 43 items.

The CBN on Thursday lifted the ban on importers of 43 items restricted from accessing foreign exchange on its official platform.

It disclosed this in a statement titled, ‘CBN restates commitment to boost liquidity in forex market’, signed by the Director, Corporate Communications, Isa AbdulMumin.

“Importers of all the 43 items previously restricted by the 2015 circular referenced TED/FEM/FPC/GEN/01/010, and its addendums are now allowed to purchase foreign exchange in the Nigerian foreign exchange market,” the statement said.

Figures obtained from the FMDQ revealed that there wasn’t improvement in turnover on the official trading platform, as it recorded $53.02m turnover from $60.30m on Tuesday.

The naira however appreciated slightly as it exchanged at 764.86/$ from 766.70/$ on Thursday.

Analysts at Cordros Securities said on the forex ban lift that, “In our view, while this is another step forward, we think FX liquidity should take prominence to avoid further FX pressures at the official and parallel markets, more so that the FX queue will now be longer at the official market without liquidity.

“Perhaps this is a signalling tool by the CBN to shift attention away from the parallel market and reduce the pressure of the official market playing a catch-up game with the unofficial exchange rate.

“Hence, in terms of impact, we think FX pressures will increase in the official market in the near term, while the parallel market rate is likely to appreciate as the importers of these 43 items move to the official market.”

Olusola Akintonde/Punch