Friday, November 21, 2014 5.31 PM/ CBN
This is to inform off Authorized Dealers and the General Public that we have observed that some Authorized Dealers have been indulging in the sole of foreign exchange for items which are not supported with necessary shipping documents, particularly on open account basis.
It is therefore important to note that only imports which are cash backed with evidence of shipment and other relevant document are eligible for foreign exchange
For the avoidance of doubt, only transactions for which Letters of Credit ore cash backed, or with matured Cleon Lines or matured Bills for Collection ore eligible for purchase of foreign exchange in the forex market.
For the sake of emphasis, “Front Loading" purchase of foreign exchange in both RDAS and Interbank shall no longer be permitted with effect from the date of the circular.
Any infraction whatsoever of these requirements, by any Authorized Dealer, shall be appropriately sanctioned
Please ensure strict compliance.