The RT200, is a major policy enacted by the CBN early this year as a measure to raise $200 billion in forex earnings from non-oil proceeds over the next 3-5 years.
Forex: Nigerian companies sideline FG's RT200 program, target black market rates
Fresh reports have shown that some companies who engage more in transactions requiring foreign exchange may have sidelined the Federal Government’s RT200 policy introduced by the Central Bank of Nigeria, CBN to patronize black market rates.
Forex trading
The RT200 policy was mainly targeted at businesses and exporters focused on export activities that encourage repatriation of funds via the import, and export windows.
In order to encourage the cooperation of exporters in this policy, the CBN offered these companies who repatriate funds for third-party usage an additional incentive of N65 for every dollar repatriated. The other companies who sold for their own usage got N35 for every dollar sold.
Despite the incentive that comes with the policy, some companies have been reported to ignore the guidelines which govern sales of forex in the official markets to patronize the black market rates.
ADVERTISEMENT
Giving an example, a company will repatriate $1 million, then sell at the official rate of between N416-N440/$1, collect their N65 incentive as presented by the RT200 policy, and then transfer the burden of paying for the difference between the official rate and the black-market rate of over N700/$1 to the buyer.
A source quoted by Nairametrics also noted that this practice which is widespread enables the companies to sell at parallel markets while still complying with CBN guidelines.
Reasons for the actions have been blamed on the unstable price of forex in the past months.
By the time the RT200 policy was introduced by the CBN in February this year, the dollar-naira exchange rate was N580/$1.
As of September 2022, nine months after, the exchange rate has depreciated to N710/$1.
ADVERTISEMENT
The high exchange rate had further led to the scarcity of forex thus companies resorted to the black market transactions
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.ng
Recommended articles
FreshYo to reward customers with Mega Millions Promo!
Ghana's Cedi set for a huge comeback following the IMF’s $3 Billion bailout
App-based transport workers want Uber, Bolt to make minimum trip fare ₦2k
See the ambitious Sh1.4 trillion ($10 billion) project the president of Kenya is involved in
Experience uninterrupted power - Discover the Infinix NOTE 30 and its revolutionary fast charging technology
Introducing American Cola: The bold and refreshing new product by Planet Bottling Company
Tanzania to grant special status to diaspora inhabitants by the end of 2023
Telcos issue disconnection notice to banks over ₦120 billion USSD debt
A report by Bill Gate’s Foundations shows Nigeria’s impressive mobile money performance
ADVERTISEMENT
![President Bola Tinubu at his inauguration ceremony [NPF]](data:image/svg+xml;charset=utf8,%3Csvg%20xmlns%3D'http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg'%20width%3D'300'%20height%3D'172'%20data-ring-placeholder%3D'1'%3E%3C%2Fsvg%3E "President Bola Tinubu at his inauguration ceremony [NPF]")