By Yakubu LAAH InvestAdvocate

Lagos (INVESTADVOCATE)-The Central Bank of Nigeria (CBN) last week directed Bureau de Change (BDC) operators to honour letter of credit establishment prior to June 23, 2015 for 41 items not valid for foreign exchange (Forex).

The CBN said this in a circular dated October 23, 2015 signed by Olakanmi Gbadamosi, director, Trade & Exchange Department.  

The circular reads thus: “Further to the circular Ref: TED/FEM/FPC/GEN/10/010 of June23, 2015 on the above subject, Authorised dealers are hereby informed of the following for immediate compliance:

1.       Confirmed /Unconfirmed Letters of Credit established before the release of the circular of June 23,2015 in respect of the 41 items excluded from the foreign exchange market can now be paid from the interbank foreign exchange market.

2.      This circular applies only to the “LETTERS OF CREDIT” established for the 41 items prior to the date of the circular

3.      Banks are required to render weekly returns on the negotiated Letters of Credit to the Director, Trade and Exchange Department, CBN Abuja as per attached format. 

4.      For the avoidance of doubt, no bank or Bureau de Change(BDC) is to provide foreign exchange for any of the 41 items in respect of Forms ‘M’ established after June 23,2015,” the CBN affirmed.