A Review of the Nigerian Energy Industry

Foreign exchange: CBN accuses authorised dealers of round tripping

22 November 2014, Abuja – The Central Bank of Nigeria (CBN) has cautioned all authorized dealers in foreign exchange to desist from selling forex for items not supported with necessary shipping documents.

CBN Director, Trade & Exchange, Olakanmi Gbadamosi said in circular released yesterday with title: Sale of Foreign Exchange without adequate documentation- Particularly Shipping Documents’ that any dealer who violate its policy on foreign exchange sales will be sanctioned.

Central-Bank-of-Nigeria-CBNHe said that only imports which are backed with evidence of shipment and other relevant documents are eligible for foreign exchange.

“This is to inform all authorised dealers and General public that we have observed that some authorised dealers have been indulging in the sale of foreign exchange for items not supported with necessary shipping documents, particularly on open account basis. It is therefore important to note that only imports which are backed with evidence of shipment and other relevant documents are eligible for foreign exchange,” he said.

For the avoidance of doubt, only transactions for which letters of Credit are cash-backed, or with matured Clean Lines or matured Bills for Collection are eligible for the foreign exchange in the forex market.

 

– The Nation

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