Excluding importer from inter-bank market will further devalue Naira— Experts

He however, acknowledged the policy was cheering news to local manufacturers as it will encourage local production of the items for which importers were barred from the interbank market.

In the circular signed by its Director, Trade and Exchange, Olakanmi Gbadamosi, the CBN listed 40 items that are not valid for forex in the interbank market to include: rice, cement, private jets, a wide range of other construction materials, plastic and rubber products and cosmetics etc.

“The implementation of the policy will help conserve foreign reserves as well as facilitate the resuscitation of domestic industries and improve employment generation,” the circular read.

The apex bank asserted that those who want to import these items which were banned have to source for their foreign exchange outside the interbank market.

The CBN has taken different measures aimed at strengthening the country’s currency that has shed over 8 per cent of its value this year alone.

The regulator had earlier this week met with banks chiefs to fashion out ways of further strengthening the forex market, although the outcome of the meeting was not made public.

It would be recalled that the apex Bank had in February closed the Retail Dutch Auction System (rDAS) and Wholesale Dutch Auction System (wDAS) and directed all those in need of forex to route their demands through the interbank market.

“It will put a lot of pressure on the alternative forex markets i.e the parallel and the bureau de changes.

These markets are shallow markets that would not be able to withstand the pressure the demand that this policy will create,” he noted.

He argued that the latest CBN policy will lead to further depreciation of the naira and would also fuel inflation in the country.

“Although, this policy will give those who have access to the market some advantages.

Manufacturers who have access to the official market will have advantages over importers of these products.

“There will also be a vast disparity between the exchange rate at the interbank market and parallel market, which will create some sort of problems,” he added.

The LCCI boss noted the decision to prevent some sets of importers from accessing the forex market will encourage round-tripping.

The President, Association of Bureau de Change Operators of Nigeria (ABCON), Alhaji Aminu Gwadabe said the latest CBN policy will create more business for the street market, because the bureau de change operators are not permitted to fund import.

He opined that the development would worsen the scarcity of the dollar as these importers would be forced to source their dollar from the street market and other sources.