In a strategic shift to reevaluate its foreign exchange (forex) policies, the Central Bank of Nigeria (CBN) has announced the cessation of two prominent schemes aimed at boosting remittances and forex supply.
Effective immediately, the RT200 Rebate Scheme and Naira4Dollar Remittance Scheme will be discontinued, paving the way for a fresh approach to promoting liquidity and stability in the forex market.
The RT200 Rebate Scheme, introduced earlier as an incentive for recipients of diaspora remittances, provided a ₦5 rebate for every dollar sent to Nigeria through authorized remittance channels. This initiative aimed to encourage the inflow of foreign currency and boost the availability of forex in the country.
However, after careful evaluation, the CBN has determined that a free float exchange policy would better serve the goal of sustaining a robust forex market.
Similarly, the Naira4Dollar Remittance Scheme, which was launched as a limited-time promotion, offered an additional ₦5 incentive for every dollar remitted to Nigeria through licensed international money transfer operators.
The scheme aimed to incentivize individuals to use formal channels for their remittances, channeling them through authorized avenues rather than informal channels. While it garnered significant attention and participation during its operation, the CBN has decided to conclude the scheme as part of its broader forex policy review.
The decision to end these schemes reflects the CBN’s commitment to adopting more effective and sustainable strategies to bolster forex supply and liquidity. By reassessing existing programs and introducing innovative measures, the CBN aims to create a more robust and resilient forex market environment.