FX: CBN releases operating guidelines for its R200 policy

The Central Bank of Nigeria has released guidelines for the operationalisation of its R200 policy.

CBN initiated the R200 policy to reduce exposure to volatile sources of foreign exchange and to earn more stable and sustainable inflows.

The policy is aimed at raising $200 billion in foreign exchange earnings from non-oil proceeds over the next five years.

CBN Director of Trade and Exchange Department, Ozoemena Nnaji, in a circular on Monday, said a major anchor of the policy was the Non-Oil Export proceeds repatriation Rebate Scheme.

Mrs Nnaji said the rebate scheme will incentivise exporters in the non-oil export sector and encourage repatriation and sale of export proceeds into the FX Market.

She said that only exporters of finished and semi-finished goods were eligible for the incentive.

“It is borne out of the need to develop new strategies aimed at earning more stable and sustainable inflows of FX, in order to insulate the Nigerian economy from shocks and FX shortages.

“Exporters shall qualify for the rebates only where repatriated export proceeds are sold at the Investors’ and Exporters’ (I&E) Window.

“Eligible transactions that qualify for incentives under the Scheme shall be Export of finished and semi-finished goods wholly or partly processed or manufactured in Nigeria,” she said.

The director listed registration with the Corporate Affairs Commission and Nigeria Export Promotion Council, and the sale of repatriated export proceeds at the I & E window as part of the guidelines.

She said that the guidelines would be subject to review from time to time as may be deemed necessary by the CBN.