FX: CBN injects $213.4bn in I&E window in five years

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BY BAMIDELE FAMOOFO

Uba Group

In five years, the Central Bank of Nigeria has injected about $213.4 billion into the Investors’ and Exporters’ window of the foreign exchange market.

The Central Bank of Nigeria released $16.12 billion into the Investors’ and Exporters’ window in the first half of 2022 to intervene in the official foreign exchange market.

Turnover in the half year period, according to data released by the CBN on Thursday, was higher by $5.4 billion, compared with about $10.72 billion in the corresponding period of 2021.

The daily foreign exchange rate at the Investors and Exporters (I&E) window, otherwise referred to as the Nigerian Autonomous Foreign Exchange Market (NAFEX), appreciated by N3.00/US$ or 0.72 per cent in the first half of 2022. The exchange rate opened at N417.00/US$ in January 2022 and closed at N414.00/US$ at end June 2022.

On a monthly basis, the average exchange rate opened at N416.03/US$ in January and closed at N415.64/US$ in June 2022, representing 0.09 per cent appreciation. In 2021, the daily exchange rate opened at N381.00/US$ in January and closed at N403.80/US$ at end-June. On a monthly basis, the average exchange rate opened at N394.03/US$ in January and closed at N411.30/US$ in June 2021.

To enhance foreign exchange supply, the Bank sustained the implementation of ongoing policies of Naira-4- Dollar, Policy for Production and Productivity and agricultural funding schemes, among others. It also introduced the Race-To-US$200 billion FX programme (RT200) principally to facilitate non-oil production, value addition for exports and the repatriation of export proceeds.

Arising from the programme, the Bank issued the circular “Operational Guidelines for RT200 Non-Oil Export Proceeds Repatriation Rebate Scheme” on February 25, 2022 and commenced the implementation. Consequently, the sum of N35.77 billion was paid as rebate to eligible beneficiaries during the period under review. In addition, a maiden non-oil export summit was held on June 16, 2022 to foster the objective of the programme.