Rice, Cement Importers Banned From Foreign Exchange Market

The Central Bank of Nigeria (CBN) has reportedly banned importers of rice, cement and 38 other products from buying dollars from the foreign exchange market, Vanguard reports. 

The ban is coming right after the one year anniversary of the CBN governor, Mr. Godwin Emiefele, who is the former managing director of Zenith Bank.

READ ALSO: Naira Devaluation: Effects for Nigeria and Nigerians 

It is not yet clear why the apex bank took this decision as details are still sketchy as at the time of writing this report.

Three months back, the CBN stated that any exporter that uses export proceeds for non-eligible transactions will be barred from the foreign exchange market.

The CBN had earlier pledged to support the productive sectors of the economy in its resolve to diversify and expand the economy, and threatened to suspend banks that help in fueling speculative demands for foreign exchange.

Capital flight has led to the depletion of Nigeria’s foreign reserves, thus weakening the Naira. Nigeria’s foreign exchange reserves, which was $5.4 billion in 1999, rose to an overwhelming level of $51.3 billion at the end of 2007 and further to $53.0 billion in 2008, but owing to the crash in the international price of crude oil in 2008 and the aftermath of the global financial crisis, the reserve declined to $42.4 billion in 2009, further declined from $38.138 billion at the end of April 2014 to $33.04 billion in February 2015.

READ ALSO: How Oil Crisis Can Destroy Nigeria

Meanwhile,there was an armed robbery attack at the Zenth bank and First bank in Ebute Ipakodo, Ikorodu, Lagos state today.

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