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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Naira

Black Market Dollar to Naira Exchange Rate Today 17th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Published

2 days ago

May 17, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 17th, 2024 stood at 1 USD to ₦1,540.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,560 and sold it at ₦1,550 on Thursday, May 16th, 2024.

This indicates a slight improvement in the Naira exchange rate when compared to today’s rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.

How much is dollar to naira today in the black market

For those navigating the currency exchange landscape, here are the latest figures for the black market exchange rate:

Buying Rate: ₦1,540
Selling Rate: ₦1,530

As economic conditions continue to evolve, staying informed about currency exchange rates empowers individuals to make informed financial decisions. While the black market provides immediate insights, adherence to regulatory guidelines ensures stability and transparency in forex transactions.

Forex

SEC and ABCON Explore Collaboration for ‘Kolectyomoni’ Digital Currency Platform

Published

2 days ago

May 17, 2024

Samed Olukoya

The Association of Bureaux De Change Operators of Nigeria (ABCON) has initiated talks with the Securities and Exchange Commission (SEC) to explore collaboration on its upcoming digital currency market platform, ‘Kolectyomoni’.

This move was underscored during an official visit by ABCON representatives to the newly appointed Director General of the SEC, Dr. Timi Agama. Aminu Gwadabe, President of ABCON, conveyed the association’s eagerness to engage with SEC to ensure the smooth operation of its digital currency platform.

Gwadabe emphasized that ABCON recognizes the regulatory oversight of SEC in the financial sector and seeks its guidance to navigate the complexities of the digital currency market.

He pointed out that while digital currencies hold immense potential for financial inclusion and innovation, they also present regulatory challenges that require collaborative efforts between industry stakeholders and regulatory bodies.

Highlighting the significance of embracing digital currencies, Gwadabe noted, “The future of BDC’s business is digital currency.”

He stressed the growing adoption of digital currencies among Nigerians, citing statistics that reveal a rising number of participants in the digital currency ecosystem, with a substantial market size of $9 billion annually.

In response, Dr. Timi Agama expressed SEC’s openness to support and facilitate the growth of the digital currency sector in Nigeria.

He acknowledged ABCON’s initiative in launching the ‘Kolectyomoni’ platform and assured of SEC’s cooperation in providing regulatory guidance and oversight.

Agama reaffirmed SEC’s commitment to fostering innovation in the financial sector while ensuring investor protection and market integrity.

He underscored the importance of collaboration between regulators and industry players to develop robust frameworks that foster innovation and safeguard against potential risks.

Furthermore, Agama encouraged ABCON to finalize the development of the ‘Kolectyomoni’ digital currency platform and submit it to the SEC for thorough review and assessment by the technical team.

He emphasized the need for timely regulatory oversight to address emerging trends in the digital currency market and maintain regulatory compliance.

Naira

Black Market Dollar to Naira Exchange Rate Today 16th May 2024

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Published

3 days ago

May 16, 2024

Samed Olukoya

The black market, also known as the parallel market or Aboki fx, US dollar to Nigerian Naira exchange rate as of May 16th, 2024 stood at 1 USD to ₦1,560.

Recent data from Bureau De Change (BDC) reveals that buyers in the Lagos Parallel Market purchased a dollar for ₦1,530 and sold it at ₦1,520 on Wednesday, May 15th, 2024.

This indicates a decline in the Naira exchange rate compared to the current rate.

The black market rate plays a crucial role for investors and participants, offering a real-time reflection of currency dynamics outside official or regulated exchange channels.

Monitoring these rates provides insights into the immediate value of the Naira against the dollar, guiding decision-making processes for individuals and businesses alike.

It’s important to note that while the black market offers valuable insights, the Central Bank of Nigeria (CBN) does not officially recognize its existence.

The CBN advises individuals engaging in forex transactions to utilize official banking channels, emphasizing the importance of compliance with regulatory frameworks.