The Lagos Chamber of Commerce and Industry on Wednesday said the Central Bank of Nigeria, CBN, need to clarify on what it describes as a special window for critical transactions for which preferential rates will apply.
The CBN Governor while announcing the decision of the Monetary Policy Committee decision said that there will be flexibility in the forex market and a special window will be created for critical sector.
“We would like to caution against possible abuse and distortions that such a window could create. It could pose a risk to the entire system. We would like to be assured that the window for the critical transactions will be managed transparently and in a manner that it will not create distortions in the economy.
“Export proceeds, capital importation and Diaspora remittances should be allowed into the economy through the autonomous window at prevailing market rates. And the owners of such funds should have unhindered access to their funds,” the chamber said in a statement signed by its Director General, Alhaji Muda Yusuf.
According to him, the CBN should revisit the list of items that have been placed on exclusion list of the forex market, saying that many critical inputs of manufacturing companies are on the list and this has crippled the operations of such companies creating significant job and output losses.
Also, the Managing Director of Financial Derivative Company, Mr. Bismarck Rewane, noted that considering the level of corruption in the country, the special window for forex will be abused.
According to him, just like the fuel subsidy was abused, the special window too will be abused as banks will disburse the forex based on their discretion.
He added that the economy desires a transparent forex market which guarantees level playing fields for all investors.