Nigeria’s external reserves added $45.3million in July, according to movement in reserves data released by the Central Bank of Nigeria (CBN).
The foreign exchange buffer as of July 28, 2022, moved to $39.22billion from $39.17billion it commenced the month under review.
Analysts have attributed the steady increase in external reserves to CBN’s RT $200 billion Foreign Exchange (FX) Programme, stressing that the policy unveiled in February 2022 has revived foreign exchange earnings from non-oil proceeds.
Analyst at PAC Holdings, Wole Adeyeye said, “The increase in foreign exchange inflows from the non-oil sources, through the CBN RT200 FX programme and increase in diaspora remittances, may have contributed to the increase in Nigeria’s external reserves in July.”
EconomicConfidential recalls that the CBN in February released the operating guidelines for the non-oil export proceeds repatriation rebate scheme as introduced in the RT200 foreign exchange programme.
Precisely, the guideline stipulates those exporters will be paid N65.00 for every $1.00 repatriated and sold at the Investors & Exporters Foreign Exchange Window (I & FX) to Authorised Dealing Banks (ADBs) for other third-party use and N35.00 for every $1.00 repatriated and sold at the I & FX for own use on eligible transactions only.
Although the rebate scheme is just one of the five key anchors of the RT200 FX programme, the CBN aims to raise $200.00 billion in foreign exchange earnings from non-oil export proceeds over the next three to five years.
The CBN governor, Mr. Godwin Emefiele at the end of July’s Monetary Policy Committee (MPC) stated that members applauded the performance of the RT200 and similar initiatives targeted at improving accretion to reserves and stabilizing the exchange rate.