As a result of the dwindling value of the Naira due to the
fall in oil price, the Central Bank of Nigerian (CBN) in an open letter to the
general public, authorized dealers and importers, has imposed new foreign
exchange controls to try to stem the flow of dollars out of the country.
It means importers will not be able to get hard currency to
buy a list of 40 items which includes Indian incense, plastic and rubber
products, cosmetics, private jets rice, cement and many more. It has also
restricted access to the interbank currency market for the purchase of foreign
currency bonds.
"We see this policy move as confirmation that foreign exchange supply remains extremely tight. But more worryingly, it suggests that the central bank remains reluctant to devalue the naira," said Yvonne Mhango, sub-Saharan Africa economist at Renaissance Capital.
Analysts said the latest measures meant importers would
increasingly turn to the black market to buy dollars.
Cobus de Hart of South Africa's NKC Africa Economics said,
"The decision to, in effect, introduce additional capital controls does
not bode well in relation to investor perception and may also adversely affect
domestic business operations and costs."
Photo Of The Letter - BBC Africa
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