He said there was need for tougher measures to keep the forex market and economy going by fiscal and monetary policy makers at this extraordinary time ignited by the COVID-19 pandemic. He said the COVID-19 pandemic has led to drop in crude oil prices and drastic cut in
Gwadabe in a statement, said the proposed window will boost liquidity in the Bureaux De Change (BDCs) sub-sector, Investors' and Exporters' (I and E) forex window and help the CBN sustain stability of the exchange rate.
He said the forex window, which differs from the previous Voluntary Offshore Asset Regularisation Scheme backed by executive order 008 and tied to taxation, will be an incentive for owners of stashed funds abroad to be given an amnesty to repatriate their foreign cash holding into the window and to be traded at the prevailing rates in those windows.
Besides, owners of such funds should have one year amnesty to participate in the market and should be liable to pay a reduced corporate income tax of 20 per cent.
Gwadabe also advised that naira proceeds from the transactions in that window should be invested in the economy for a maximum of 10 years before it can be allowed to be repatriated back if the need arises.
According to him, the window will boost foreign exchange liquidity and stem the volatility in the market. It will also help in diversifying
Continuing, Gwadabe said it will lead to reduction in the size of black and informal economy, boost sovereign credit ratings, improve living standards for the people and promote good corporate governance in institutions.
'Going by the dire consequences of COVID-19 on our economic indicators- decline in oil revenue, low tax to Gross Domestic Product (GDP) ratio, increasing budget deficit, declining fiscal buffers and debt servicing challenges, among others, poor revenue problem and falling oil prices despite
He said the economy outlook, when compared to global economic trends does not look positive, hence the need to find a turning point or face dire consequences of inaction.
He said that
Gwadabe said there was need for both the monetary and fiscal authorities to act fast in ensuring that the impact of COVID-19 pandemic in the economy and businesses is reduced by attracting more foreign capital into the economy through the Voluntary Offshore Asset Repatriation Window which will benefit all players in the economy.
© Pakistan Press International, source