CBN not pushing amendment to FX law

The Central Bank of Nigeria (CBN) has distanced itself from an alleged bill seeking to amend the foreign exchange management act that has become the subject of comments on the social media in the last one week.

“The Central Bank has nothing to do with this proposal and I can say that categorically,” the apex bank governor, Godwin Emefiele told BusinessDay in response to an enquiry.
The document titled, “FOREIGN EXCHANGE (MONITORING AND MISCELLANEOUS PROVISIONS) ACT (AMENDMENT) BILL 2016,” sets out to amend the foreign exchange and monitoring and miscellaneous provisions act, cap F34LFN 2004 to provide for objectives and strengthen the framework for effective monitoring and control, and to ensure probity in foreign exchange transactions in Nigeria.
According to Emefiele, “the bank is aware of the interest in this document and the commentary it is generating on social media but this bill did not originate from the Central Bank.”
Section 9A of the bill seeks to control the possession of foreign currency.
According to this section, “The possession of foreign currency by any person without depositing same in a domiciliary account within 30 days of its acquisition constitutes an offence liable on conviction to two years imprisonment or to a fine of 20% of the amount of the foreign currency involved.”
Section 9B of the proposed amendment provides that in relation to the return of unused foreign currency to domiciliary account, “If a person has applied and obtained from an Authorised Dealer any foreign currency and the person no longer requires all or any part of such foreign currency for the purpose(s) stated in his application, he shall within 30 days offer for sale to the an Authorised Dealer that foreign currency which is not so required, which may be repurchased at the price it was sold to him or such other price as the Central Bank may determine. Any person who contravenes the provision of subsection (1) of this section commits an offence and shall be liable on conviction to two years imprisonment or to a fine of 20% of the amount of the foreign currency involved.”
Analysts say if the proposal were to be confirmed, it would further worry foreign investors.
Last week, security agents threatened to arrest black-market money-traders if they exchanged the naira at a rate weaker than 400 per dollar, compared with the existing street-rate of around 460. The currency’s official exchange rate, which analysts say the central bank is still manipulating, is 315 against the greenback.

 

By our reporter