Lagos - Nigeria’s central bank has asked commercial lenders to allocate 60 percent of foreign exchange (forex) purchases to manufacturers, in a bid to boost their ability to pay for imports and boost the economy.
Dollar shortages have hit manufacturers’s ability to import raw materials and spare parts.
The central bank said it wanted to encourage the production of local goods.
“Authorised dealers (banks) are hereby directed to dedicate at least 60 percent of their total foreign exchange purchases from all sources to end-users strictly for the purposes of importation of raw materials, plant and machinery,” the bank said in a circular dated Monday.
The bank abandoned its naira peg to the dollar, allowing the naira to weaken by 40 percent to attract more foreign investment.
But so far trading in the official foreign exchange market has been limited as those with dollars prefer to sell them for a higher rate on the black market.
-REUTERS