Pre-SFEM import: N2.6b tied down

About N2.6673 billion was paid by importers into the commercial banks that are still awaiting foreign exchange cover from the Central Bank.
A large portion of the money, had been paid into the banks since 1983.
The Republic gathered that N1.4285 billion is already paid to the Central Bank, while the balance of N1.2388 billion which represents the advanced deposit paid by importers against letters of credit is with the commercial banks.
Financial sources, said the backlog was caused by foreign exchange crunch which hit the country.
Accordingly, CBN cannot provide foreign exchange to facilitate the transfer of the money to overseas creditors before the introduction of Second Tier Foreign Exchange Market (SFEM).
The hike in exchange rates put the importers who had already settled their bills in a difficult position as they were being asked by their bankers to pay the new rates.
The importers, however, insisted that it was not proper for the banks to ask them to pay the prevalent exchange rates.