Current cbn forex for capital import

Current cbn forex for capital import

29/07/ · Also commenting on the CBN actions, Prof Uche Uwaleke, professor of finance and capital market and former commissioner for finance Imo State, said the decision by the CBN to stop forex sale to BDCs has merits and demerits. “I think it is in the best interest of the Nigerian economy,” Uwaleke said 13/01/ · THE Central Bank of Nigeria, CBN, has indicated that the country’s foreign exchange reserves at current level of about USD35 billion would cover seven months import needs of the economy. This is Estimated Reading Time: 12 mins 18/03/ · Key Highlights. According to the CBN the estimated deficit in the current account widened by % to US$ billion (% of GDP), compared with US$ billion (% of GDP) in the previous quarter, owing largely to higher services import bills

Trade: CBN reviews exchange rate for cargo imports – Nairametrics

Statistics from CBN Nigeria shows that in the early 70s and 80s the country had almost textile mills. Textile mills provided jobs for overpeople back in the days. Unfortunately, most of the textile mills have closed down. Therefore, many workers in the textile and cotton industry have lost their jobs.

Also, current cbn forex for capital import, the workforce has now dropped to 20, Thus, textile companies in Nigeria today operate below 20 per cent of their production capacities. Consequently, current cbn forex for capital import, the nation now depends on importation of textiles to meet its growing need for clothing.

The question therefore is; who will rescue the textile industry from collapse? Will the apex bank-Central Bank of Nigeria be able to save this sector as it has done with rice production? This article will discuss what the CBN has done, and what still needs to be done to save textile industry in Nigeria. Read Also : CBN 41 ITEMS NOT VALID-FOR-FOREX: HOW TO IMPORT. The Governor of the Central Bank of NigeriaGodwin Emefiele, has taken up the challenge to see that textile industry in Nigeria survives and thrives again, current cbn forex for capital import.

The first step taken by Mr. Emefiele is that of seeking financial support from the Apex bank for cotton producers at a single digit rate. In addition, the governor has warned commercial banks and Bureau the Change operators to desist from giving importers of textile material access to foreign exchange.

The directive given by the apex bank Governor means that textile and cotton are no longer valid for foreign exchange in Nigeria. What does this imply in actual sense? Does it mean for example that importation of textile or cotton is no longer allowed in Nigeria? No not at all. To say that a commodity is not valid for foreign exchange does not mean that such a commodity is contraband.

What it means is that importers of the marked commodity would have to source for foreign currency elsewhere other than the interbank trade or market. Hence, to import items not valid for foreign exchange, importers would have to current cbn forex for capital import dollars from the open market or black current cbn forex for capital import with more cost implications.

The CBN should do more than simply create trade barriers. In fact, some analysts believe that barriers create a negative sense of security for local producers. Instead of seeking for ways to maximise capacity and become more globally competitive, barriers make producers secure and dull. So, in addition to barriers created, CBN and the Federal Government should take the following steps to maximise growth of textile industry.

The importers of textile and cotton must first of all buy foreign currency from the parallel market, current cbn forex for capital import. Second, importers must obtain permission from the Central Bank of Nigeria through its bank before commencement of Form M and importation. Read Also : FORM M NIGERIA: HOW TO PROCESS AND OBTAIN IT. CBN strategy of placing some commodities like textile in not valid current cbn forex for capital import forex barrier has already started yielding good results in rice production.

Recent statistics has shown that Nigeria is the largest producer of rice in Africa. Similarly, it is expected that textile and cotton production will grow in a short time after inclusion as not valid for forex.

However, CBN is expected to help local producers through infrastructure investments to achieve more growth. Contact us for any importation or export hassle. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Skip to content Statistics from CBN Nigeria shows that in the early 70s and 80s the country had almost textile mills. Read Also : CBN 41 ITEMS NOT VALID-FOR-FOREX: HOW TO IMPORT CBN BANS FOREX FOR TEXTILE IMPORTERS The Governor of the Central Bank of NigeriaGodwin Emefiele, has taken up the challenge to see that textile industry in Nigeria survives and thrives again.

CBN: TEXTILE AND COTTON NOT VALID FOR FOREIGN EXCHANGE IN NIGERIA The directive given by the apex bank Governor means that textile and cotton are no longer valid for foreign exchange in Nigeria. CBN NOT-VALID-FOR-FOREX DIRECTIVE: BENEFITS Some of the benefits of placing a not-valid-for-forex barrier on imported goods are as follow: Less access to foreign currency means less importation and more productive thinking Reduction in importation means less stress on local currency Local producers begins to grow organically as importation reduces More local production means more job Increase in job arising from local production means economic growth Less access to forex also translates to incentive to producers, and means more investments.

TEXTILE INDUSTRY WHAT MORE CAN THE CBN DO? Improve technical capacity of local producers Provide necessary infrastructures of production Improve border security to eliminate smuggling Intentionally create market through social marketing platforms and branding Seek to improve capacity and efficiency Create a more competitive environment for local producers that make them meet global standards.

Improve packaging, sanitation and production for example. HOW TO IMPORT TEXTILE The importers of textile and cotton must first of all buy foreign currency from the parallel market. Please follow and like us:. Leave a Reply Cancel reply Your email address will not be published.

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CBN BANS FOREX FOR TEXTILE IMPORTERS NIGERIA

13/01/ · THE Central Bank of Nigeria, CBN, has indicated that the country’s foreign exchange reserves at current level of about USD35 billion would cover seven months import needs of the economy. This is Estimated Reading Time: 12 mins Currency is issued to deposit money banks through the branches of the CBN, and old notes retrieved through the same channel. Currency deposited in the CBN by the banks are processed and sorted to fit and unfit notes in line with the clean note policy. The clean notes are re-issued while the dirty notes are destroyed 29/07/ · Also commenting on the CBN actions, Prof Uche Uwaleke, professor of finance and capital market and former commissioner for finance Imo State, said the decision by the CBN to stop forex sale to BDCs has merits and demerits. “I think it is in the best interest of the Nigerian economy,” Uwaleke said