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CBN bans foreign exchange gross sales to maize importers

CBN bans foreign exchange gross sales to maize importers

The Central Financial institution of Nigeria (CBN) on Monday directed banks to cease processing new overseas trade paperwork (Type M) for maize imports .

In a round to business banks, the apex financial institution stated it wished to help the rise in native manufacturing, stimulate the economic system and safeguard rural livelihoods misplaced because of the COVID-19 pandemic.

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The financial institution requested sellers to submit an import doc, known as Type M, for maize by tomorrow.

Type M is a doc to be accomplished by importers into Nigeria. The documentation additionally allows lenders submit bids to the apex financial institution for exhausting forex to pay for the imports.

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The federal government is looking for to fund a steadiness of cost hole of round $14 billion within the yr, in line with central financial institution knowledge.

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Greenback demand has been swelling and piling strain on the naira. Importers with late obligations have scrambled for exhausting forex whereas suppliers of overseas trade, similar to offshore traders, have exited.

The oil value crash brought on by coronavirus pandemic has exacerbated a scarcity of {dollars} for Nigeria, whose reserve has declined 20 per cent to $36.13 billion over the past yr.

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Final yr, the CBN instructed lenders to cease processing milk imports on a credit score foundation after it stated it might ban entry to foreign exchange for diary to spur native manufacturing. It later lifted foreign exchange restrictions for milk imports for six companies.

CBN bans foreign exchange gross sales to maize importers

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