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Manufacturers to get 60% forex
Perturbed by the continued dwindling fortune in the domestic economy, the Central Bank of Nigeria (CBN) has directed Authorised Dealers (banks) to allocate 60 per cent of their Foreign Exchange, (forex) purchases from all sources (interbank inclusive) to manufacturers and 40 per cent to other users for the purpose of trade and other obligations.
In a circular titled “Foreign exchange sales to end users” and signed by Acting Director, Trade and Exchange Department, W.D. Gotring, CBN 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 channelled towards the importation of raw materials for the manufacturing sector”
The apex Bank added: “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.”
According to CBN, 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.
