Atedo Peterside, the founder of Stanbic IBTC Bank Plc., has welcomed the Central Bank of Nigeria’s (CBN) decision to relax the ban on the 43 products earlier barred from accessing Foreign Exchange (FX).
Remember that the top bank lifted the prohibition on 43 products on Thursday and declared that importers of the items could now purchase FX from the country’s official market.
Rice, cement, margarine, palm kernel, palm oil products, vegetable oils, meat and processed meat products, vegetables and processed vegetable goods, poultry, tomatoes/tomato paste, soap, cosmetics, and head pans are among the products.
Until We Change The Constitution And Restructure, Nothing Will Ever Change – Atedo Peterside
It should be noted that importers of certain commodities were prohibited from obtaining foreign currency, as stated in the 2015 Circular TED/FEFPC/GEN/O1/010 and its addendums.
However, under the new regulation, importers of such commodities are now permitted to purchase foreign currency in the Nigerian Foreign Exchange Market.
In an X post on Friday, Peterside claimed the financial authority took the correct decision in discouraging importers from using currency policy as a factor of profitability.
He wrote: “Attacking a problem at the source: CBN is right (See Circular) to discourage the use of FX policy as a determinant of which importer achieves what margin of profitability. That is the role of levies and tariffs.
“FX market exclusions only fuel the parallel market and widen arbitrage.”
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