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Naira Watch

Naira appreciates against US dollar as CBN woos exporters with N65 bonus for every $1

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The value of Nigerian currency appreciated against the United States of America’s dollar as the Central bank of Nigeria moved to boost forex supply.

Data from FMDQ showed that on Friday, Naira appreciated by 25 kobo or 0.06 per cent to settle at N416.00/$1 in contrast to N416.25/$1 from the previous session.

The local currency closed stronger as forex supply increased by $134.39 million, 97.4 per cent or $66.31 million higher than the $68.08 million on Thursday last week.

Similarly, the domestic currency appreciated by 41 kobo against the Pound Sterling to sell for N557.59/£1 in contrast to N558/£1 of the previous session.

It was a different story against the Euro as the Naira value dropped by 94 kobo to settle at N465.96/€1 compared with N465.02/€1 it was transacted on Thursday.

Meanwhile, in an effort to ease pressure at the official market, the CBN has introduced a N65 bonus for every $1 of repatriated non-oil export proceeds sold at the official forex market.

The apex bank, which stated this in a circular on Friday, said that the rebate forms part of the benefits under the Non-Oil Exports Proceed Repatriation Rebate Scheme.

Read also: Naira drops in value despite reduced forex transactions

Part of the circular reads: ‘Operating Guidelines for RT200 Non-Oil Exports Proceed Repatriation Rebate Scheme,’ the apex bank stressed that the scheme was part of the RT200 FX programme recently introduced by it aimed at attracting $200 billion in foreign exchange earning from non-oil exports proceeds over the next three to five years.

“The scheme shall pay N65 for every US$1 repatriated and sold at the I & E Window to Authorised Dealers and Banks (ADBs) for other third party use, and N35 for every US$1 repatriated and sold into I&E for own use on eligible transactions only.

“However, the spread should not be more than 10 Kobo

“Payment of the incentive shall be made on a quarterly basis. The accounts of exporters that qualify for rebates shall be credited latest one week after the end of the quarter,” CBN said.

CBN also stated that only exporters of finished and semi-finished goods are eligible for this incentive, adding that exporters shall qualify for the rebates only where repatriated export proceeds are sold at the Investors’ & Exporters’ Window(I& E).

Eligible transactions that qualify for incentives under the scheme, it pointed out, shall be the export of finished and semi-finished goods wholly or partly processed or manufactured in Nigeria, except otherwise stated by the CBN.

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