By CHINEDU IBEABUCHI
THE Central Bank of Nigeria has relaxed the restriction on foreign exchange transaction saying that the Wholesale Dutch Auction System, WDAS Fund, can now be used to negotiate Unconfirmed Letters of Credit, ULC, established for the importation of raw materials, plant and machinery only.
A circular signed by the bank's Director, Trade and Exchange Department, Batari Musa, said the funds for the negotiation of ULC established for importation of general merchandise shall be from the Interbank market.
Musa said: "Authorised dealers are hereby informed that from the date of this circular, the restriction on the use of WDAS to negotiate Unconfirmed Letters of Credit (ULC) has been reviewed. Consequently, WDAS funds can be used to negotiate ULC established for the importation of Raw Materials, Plant and Machinery only. For the avoidance of doubt, funds for the negotiation of ULC established for importation of general merchandise shall be from the Interbank market. "
Vanguard Nigeria