CBN Must Collaborate With Fiscal Authorities To Avoid Failure Of New Forex Policy– CPPE

The Centre for the Promotion of Private Enterprise has called on the Central Bank of Nigeria to collaborate with the fiscal policy makers to avoid a collapse of its new policy- the RT 200 foreign exchange policy.

The RT 200 is a policy announced by the CBN Governor, Mr. Godwin Emefiele, to address the supply side of Nigeria’s foreign exchange crunch.

The CBN and the Bankers’ Committee are targeting to generate $200bn foreign remittances into the country annually through the implementation of the policy.

The CPPE, an economic think tank in a statement sent to THE WHISTLER described the policy as timely.

It said in the statement that addressing structural issues are vital to driving the growth and competitiveness of non-oil exports which is the first of the five anchors of the programme.

“Structural variables are not within the purview of the CBN or the Bankers Committee. The fiscal authorities have much bigger roles to play in fixing the structural constraints which have been impeding non-oil exports productivity and competitiveness for decades.

“Therefore, collaboration with fiscal authorities is a critical success factor for the realization of the RT 200 outcomes. It is impossible to clap with one hand, “the CPPE said in the statement signed by Director General, Muda Yusuf.

Yusuf also argued that the current pricing regime in the Importers and Exporters foreign exchange window, may negate the objectives of the RT 200.

The CPPE boss said, “It will be a major impediment to the achievement of the race to $200bn export proceeds vision. It is a pricing regime that inherently penalizes exporters and it is a major demotivating factor to investment in the non-oil export sector.

“Therefore, the CBN should take urgent steps to ensure that the exchange rate regime in the I&E window is market reflective.”

The CPPE DG explained further that exporters of the country must be allowed unfettered access to their exports proceeds.

“The current policy regime on export proceeds is stifling, restrictive and repressive. It is inhibiting export initiatives, enterprise and growth,” Yusuf added.