The Investor & Exporter forex window experienced a notable turnover of $53.02 million on Friday, marking a response to the Central Bank of Nigeria’s (CBN) decision to lift the forex ban on 43 items. The ban, in place since 2015, restricted importers of these items from accessing foreign exchange on the official platform of the CBN.
In a statement titled ‘CBN restates commitment to boost liquidity in forex market,’ the Director of Corporate Communications, Isa AbdulMumin, announced the reversal of the ban, stating that importers of the 43 previously restricted items were now permitted to purchase foreign exchange in the Nigerian forex market.
Data obtained from the FMDQ on Friday indicated a turnover of $53.02 million, a slight decrease from $60.30 million recorded on Tuesday. However, the naira experienced a slight appreciation, trading at 764.86/$ compared to 766.70/$ on Thursday.
Commenting on the forex ban lift, analysts at Cordros Securities highlighted the importance of prioritizing FX liquidity to prevent additional pressures on both official and parallel markets. The report suggested that the move could lengthen the FX queue in the official market, potentially leading to increased FX pressures in that space.
The analysts speculated that the CBN’s decision might serve as a signaling tool to shift attention away from the parallel market, aiming to reduce the pressure of the official market trying to catch up with the unofficial exchange rate. Consequently, the report anticipated a potential increase in FX pressures in the official market in the short term, while the parallel market rate might appreciate as importers of the previously restricted items shift to the official market.
