THE Ministry of Finance has announced the resumption of the foreign exchange window at the EximBank for essential imports.
This decision follows a comprehensive review by the Ministry and EximBank. It got Cabinet approval on Friday, a release by the Finance Ministry stated on Sunday.
During the COVID-19 pandemic, the EXIMBank facilitated access to foreign currency for essential items, consuming approximately US$30 million monthly over the past four years.
Moving forward, the government has restructured the forex window, the release stated.
The Minister of Finance has outlined that the list of eligible items, including essential foods, pharmaceuticals, and hygiene products, will remain unchanged but will be subject to periodic reviews.
It stated, “It has been decided that the list of foods, pharmaceuticals, and essential hygiene products, such as sanitary napkins and pads, which qualified for this special forex window from 2020 to September
2024 will remain unchanged going forward.
“However, it will be subject to periodic review to see whether items should be added or deleted, as necessary. For example, retaining borderline food items (on the margin between essential and non-essential) such as sausages is arguable.
“For the avoidance of doubt, Covid-19 pandemic-related items such as hand soap, toothpaste, face
masks, deodorant, respirators, and hand sanitisers are no longer considered to be ‘essential’
imports.”
The Ministry noted the importance of supporting local manufacturing. It stated, “The role and impact of locally manufactured products, which substitute for imports, are being carefully examined.”
The allocation for the forex facility has been adjusted to US$25 million per month, reflecting a reduction of US$5 million.
The revised forex window is effective from November 1, 2024. Further announcements regarding forex access for local manufacturers are expected following stakeholder consultations.
