The Central Bank of Nigeria (CBN), in an effort to tighten foreign exchange management, has declared that it will no longer grant requests from authorized dealers to extend the repatriation of export earnings on behalf of their clients — 9am News Nigeria reports.
W.J. Kanya, interim director of the Trade and Exchange Department, signed a circular announcing the decision, which takes effect immediately.
The circular, which is intended for all authorized dealers and the general public highlights the importance of closely following the guidelines provided in the Foreign Exchange Manual (Revised Edition, March 2018).
The notice specifically restates that, beginning on the date of the bill of lading, the exporters’ export income must be repatriated and credited into their export earnings domiciliary accounts within 180 days for oil and gas exports and 90 days for non-oil exports.
“This is a clear directive that aims to ensure prompt and efficient repatriation of export proceeds, which is vital for the stability of our foreign exchange market.
“It is critical for both oil and non-oil exporters to comply with this regulation to avoid any disruptions in their dealings with authorised dealers,” an analyst noted.
Also, it is now mandatory for authorized dealer banks to notify their clients about this new guideline and guarantee adherence.
The action is anticipated to improve the foreign exchange market’s liquidity by cutting down on export proceeds repatriation delays, which have recently been a major worry for the CBN.
This move is indicative of the CBN’s ongoing efforts to fortify the nation’s framework for foreign currency policy and guarantee prompt adherence to laws that support economic stability.
Exporters will need to modify their operations in accordance with the new regulation as it goes into effect, and banks will be crucial in guaranteeing adherence to the 90- and 180-day time constraints.
The central bank has emphasized the need of following these deadlines and warned that noncompliance may have consequences for exporters as well as the banks that handle their transactions. It is believed that the suspension of the extension requests is a component of a larger plan to deal with Nigeria’s persistent problems with economic stability and foreign exchange management.
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