2014-11-21 | TED/FEM/FPC/GEN/01/025

Sale of Foreign Exchange without adequate documentation particularly shipping documents

The Trade and Exchange Department has observed that some authorized dealers have been selling foreign exchange for items without the necessary shipping documents, especially on an open account basis. To address this issue, the department emphasizes that only imports supported by evidence of shipment and relevant documents are eligible for foreign exchange, including transactions with cash-backed letters of credit or matured clean lines or bills for collection. As a result, "Front Loading" purchases of foreign exchange in both RDAS and Interbank will no longer be permitted, and any violations will be sanctioned.

Nigeria

Central Bank of Nigeria

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