Say the development will check round tripping

Financial experts have hailed a new Central Bank of Nigeria (CBN) guideline, that regulates foreign exchange allocation on importation of petroleum products, as capable of checking capital flight and round tripping.

The new directive requires banks to get verification certificates from the Nigeria Shippers Council (NSC) on behalf of their clients before foreign exchange could be approved for them.

Chris Namedia, a former director of CBN, said that the new foreign exchange guidelines would assist the CBN to plug all financial leakages and waste of scarce resources.

He also urged government to reduce bureaucracy so that the ?logic and spirit behind the guidelines will be actualised?.

According to him, the new guidelines would improve the knowledge of NSC officials on goods verification and compliance with procedures on import and export. He said that the new rules demanded that competent workers be engaged by the NSC and CBN.

Oluwole Ibikunle, Managing Director, Boaz Strategy and Management Consultants, also said that the new foreign exchange policy would check capital flight and reduce sharp practices in foreign exchange allocation.

He said that the new policy would also save funds and boost the nation?s foreign reserves if properly managed; and advised the CBN to support the new policy with an implementation team that would enforce its directives to commercial banks.

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