Thursday, July 02, 2015 11.50AM/Central Bank of Nigeria
As a follow up to the circular Ref. No. TED/FEM/FPC/GEN/01/010 of June 23, 2015, on the above subject, Authorized Dealers, the BDCs and the general public are hereby notified of the following additional clarifications.
As stated in the circular, all the items on the attached schedule which have already been classified as “Not for forex” cannot be funded at the interbank, from proceeds of exports and Bureaux de change sources.
Consequently, Authorised Dealers are enjoined to ensure that these items are funded from sources outside all the segments of the Nigerian foreign exchange markets. (Interbank, Export proceeds and BDC segments)
Authorised dealers and the BDCs are also reminded of the need to comply strictly with the requirements of the Central Bank Circular reference no. TED/AD/62/2006 of April 4, 2006 which “inter alia” categorically stated that:
“BDCs shall use the cash purchased for the transactions listed below, provided the invoices/demand notes for the payment do not exceed US$5,000.00 (five Thousand United States Dollars) or its equivalent in other foreign currencies per transaction”.
It is therefore necessary to note that BDCs are only authorized to sell dollar cash of not more than $5,000 per each of these transactions. Under no circumstances shall an authorized dealer engage in wire transfer of funds on behalf of any of the Bureaux de change operators.
For the avoidance of doubt, any Authorized Dealer that is found to have used funds from the interbank, exports proceeds and bureau de change to consummate these items classified as “Not valid for forex” or undertake money wire transfer for a BDC shall be sanctioned appropriately.
Please note and ensure strict compliance.
1. CBN Warns Authorized Dealers Against Funding Items Classified as “Not Valid for Forex” – Jul 01, 2015
2. CBN Includes Furnitures in Imported Goods and Services Classified as Invalid for Nigerian Forex Market – Jun 24, 2015
3. CBN Classifies 40 Imported Goods and Services as Invalid for Nigerian Forex Market - Jun 24, 2015