Regulatory Alerts2016-08-22 | TED/FEM/FPC/GEN/01/007Foreign Exchange Sales To End Users
The Central Bank of Nigeria's Trade and Exchange Department has instructed Authorised Dealers to allocate at least 60% of their foreign exchange purchases towards importing raw materials, plant, and machinery for the manufacturing sector. This directive is in response to a low utilization of foreign exchange sales observed thus far. The remaining 40% should cater to other trade obligations and visible/invisible transactions. Authorised Dealers must continue publishing weekly sales to end users in newspapers and submit statutory returns promptly.
CENTRAL BANK OF NIGERIA orporate Head Office entral Business District P.M.B. 0187, Garki, Abuja, FCT TRADE AND EXCHANGE DEPARTMENT 09 46237804 09 46237802 E-mail address:ted@cbn.qov.nq TED/FEM/FPC/GEN/01/007 August 22, 2016 TO: ALL AUTHORISED DEALERS AND GENERAL PUBLIC FOREIGN EXCHANGE SALES TO END USERS.
Following the review of 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, Authorised Dealers are hereby directed to henceforth dedicate at least 60% 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% 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 foreign exchange to end users in the National Newspapers and to render statutory returns on same to the CBN promptly.
Please ensylre compliance accordingly, until otherwise advised.
DE AND EXCHANGE DEPARTMENT