Forex

CBN Lures Exporters to I&E FX Window With N65 Rebate on Every $1 Repatriated

Published

2 years ago

February 28, 2022

Naira Dollar Exchange Rate - Investors King

The Central Bank of Nigeria (CBN) has upped its strategies at ensuring that exporters repatriated their proceeds through the Importers and Exporters (I&E) forex window. The apex bank on Friday announced it has designed a rebate scheme to incentivize exporters operating in the non-oil sector.

In its Race to $200 billion (RT200) foreign exchange repatriation from non-oil proceeds over the next 3-5 years, the CBN declared it will pay N65 for every US$1 repatriated and sold at the I&E Forex Window to Authorised Dealer Banks (ADBs) for other third party use. While N35 will be paid for every US$1 repatriated and sold into I&E Window for personal use on eligible transactions. The spread should not be more than 10kobo, the apex bank warned.

Explaining the reasons for the scheme, the central bank said it was borne out of the need to stabilise forex earnings, ensure sustainable forex inflows and insulate the Nigerian economy from shocks and persistent forex shortages.

Investors King understands that the CBN’s new rebate scheme is aimed at discouraging exporters from patronising the parallel market for their forex needs and reining in the wide foreign exchange rates. Through the initiative, the central bank plans to improve economic productivity, increase new job creation in the non-oil sector and support the Federal Government’s ongoing diversification plan.

Here is the logic, the idea of the rebate is to close the forex differential between the official and the black market rates. Presently, the Naira to Dollar exchange rate is at N565 at the black market whereas at the I&E window it was about N416 to N420 before the website went offline. Meaning, the N65 rebate will bring the Naira to dollar exchange rate at that section of forex to about N485/$. This, plus the uncertainty surrounding black market transactions are likely to compel a certain portion of exporters to embrace the I&E Window for their forex needs, at least that is what the apex bank is banking on.

Objectives of CBN Non-Oil Rebate Repatriation Scheme

To enhance foreign exchange inflow
Diversify the sources of FX inflow
To increase the level of contribution of non-oil exports
Support export-oriented companies to expand their export operations and capabilities

Eligibility Criteria

Only exporters of finished and semi-finished goods are eligible for this incentive.
Exporters shall qualify for the rebates only, where repatriated export proceeds are sold at the Investors’ & Exporters’ Window.

Eligible Transactions

Export of finished and semi-finished goods wholly or partly processed or manufactured in Nigeria, except otherwise stated by the CBN.
Export of goods and services (I.T and Creative Businesses) that are permissible and excluded under existing export prohibition list.
Completion of e-Form NXP
Registration with Corporate Affairs Commission (CAC) and Nigeria Export Promotion Council (NEPC)
Sale of repatriated export proceeds at the I&E Window

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Samed Olukoya

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Forex

Yen Hits 34-Year Low Against Dollar Despite Bank of Japan’s Inaction

Published

9 hours ago

April 26, 2024

Samed Olukoya

The Japanese yen plummeted to a 34-year low against the US dollar, sending shockwaves through global financial markets.

Despite mounting pressure and speculation, the Bank of Japan (BOJ) chose to maintain its key interest rate.

The yen’s relentless slide, extending to 0.7% to 156.66 against the dollar, underscores deep concerns about Japan’s economic stability and the efficacy of its monetary policies.

BOJ Governor Kazuo Ueda’s remarks at a post-meeting news conference did little to assuage fears as he acknowledged the impact of foreign exchange dynamics on inflation but downplayed the yen’s influence on underlying prices.

Investors, already on edge due to the yen’s dismal performance this year, are now bracing for further volatility amid speculation of imminent intervention by Japanese authorities.

The absence of decisive action from the BOJ has heightened uncertainty, with concerns looming over the potential repercussions of a prolonged yen depreciation.

The implications of the yen’s decline extend far beyond Japan’s borders, reverberating across global markets. The currency’s status as the worst-performing among major currencies in the Group of Ten (G-10) underscores its significance in the international financial landscape.

Policymakers have issued repeated warnings against excessive depreciation, signaling a commitment to intervene if necessary to safeguard economic stability.

Finance Minister Shunichi Suzuki reiterated the government’s readiness to respond to foreign exchange fluctuations, emphasizing the need for vigilance in the face of market volatility.

However, the lack of concrete action from Japanese authorities has left investors grappling with uncertainty, unsure of the yen’s trajectory in the days to come.

Market analysts warn of the potential for further downside risk, particularly in light of upcoming economic data releases and the prospect of thin trading volumes due to public holidays in Japan.

The absence of coordinated intervention efforts and a clear policy stance only exacerbates concerns, fueling speculation about the yen’s future trajectory.

The yen’s current predicament evokes memories of past episodes of currency turmoil, prompting comparisons to Japan’s intervention in 2022 when the currency experienced a similar downward spiral.

The prospect of history repeating itself looms large, as market participants weigh the possibility of intervention against the backdrop of an increasingly volatile global economy.

As Japan grapples with the yen’s precipitous decline, the stakes have never been higher for policymakers tasked with restoring stability to the currency markets. With the world watching closely, the fate of the yen hangs in the balance, poised between intervention and inertia in the face of unprecedented challenges.

Naira

Dollar to Naira Black Market Today, April 25th, 2024

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

1 day ago

April 25, 2024

Samed Olukoya

Naira to Dollar Exchange- Investors King Rate - Investors King

As of April 25th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,300 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,260 and sell it at N1,250 on Wednesday, April 24th, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.

Black Market Dollar to Naira Exchange Rate

Buying Rate: N1,300
Selling Rate: N1,290

Naira

Dollar to Naira Black Market Today, April 24th, 2024

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 NGN in the black market, also referred to as the parallel market or Aboki fx.

Published

2 days ago

April 24, 2024

Samed Olukoya

As of April 24th, 2024, the exchange rate for the US dollar to the Nigerian Naira stands at 1 USD to 1,260 NGN in the black market, also referred to as the parallel market or Aboki fx.

For those engaging in currency transactions in the Lagos Parallel Market (Black Market), buyers purchase a dollar for N1,250 and sell it at N1,240 on Tuesday, April 23rd, 2024 based on information from Bureau De Change (BDC).

Meaning, the Naira exchange rate declined slightly when compared to today’s rate below.

This black market rate signifies the value at which individuals can trade their dollars for Naira outside the official or regulated exchange channels.

Investors and participants closely monitor these parallel market rates for a more immediate reflection of currency dynamics.

How Much is Dollar to Naira Today in the Black Market?

Kindly be aware that the Central Bank of Nigeria (CBN) does not acknowledge the existence of the parallel market, commonly referred to as the black market.

The CBN has advised individuals seeking to participate in Forex transactions to utilize official banking channels.