By InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) on Wednesday warned authorised dealers on funding of classified items regarded as “Not Valid for Forex”.

This is contained in a circular with reference number TED/FEM/FPC/01/012 dated July 1, 2015 and signed by Olakanmi Gbadamosi, director, Trade & Exchange Department.

The CBN says as a follow up to the circular Ref. No TED/FEM/FPC/GEN/01/010 of June 23 2015, on the above subject matter, authorised dealers and the general public are here notified of these clarifications.

According to the CBN, those items which have already been classified as “Not Valid for Forex” cannot be funded at the interbank, from proceeds of exports and Bureaux de Change sources.

“Consequently, authorised dealers are enjoined to ensure that these items are funded from sources outside all the segments of the Nigerian foreign exchange markets.
( Interbank, Export Proceeds and BDC Segments),” the circular affirmed.

The CBN says for the avoidance of doubt, any authorised dealer that is found to have used funds from the interbank, exports proceeds and bureau de change sources to consummate these items classified as “Not Valid for Forex” shall be sanctioned appropriately.