The exchange rate used for calculating customs import duties and cargo clearance has recorded its fifth consecutive decrease in less than two weeks, dropping from N1,612 per dollar on March 15th to N1,405.46 per dollar presently.
The Nigerian Customs Service (NCS) previously announced that the exchange rate for duty collection and cargo clearance would be determined by the Central Bank of Nigeria (CBN), based on the official market rate.
Here’s a breakdown of the recent decline:
– March 15th, 2024: N1,612/$
– March 16th, 2024: N1,593/$
– March 19th, 2024: N1,572/$
– March 23rd, 2024: N1,448/$
– March 27th, 2024: N1,405/$
Recent observations indicate a consistent depreciation in value, signaling the strengthening of the naira against other currencies in both the parallel and official foreign exchange markets. Over the past two weeks, the naira has shown significant improvement, rising from N1,615 per dollar on March 13th to N1,382 per dollar by March 26th.
Recent reforms by the CBN have contributed to these improvements. The central bank’s strategic measures aim to curb inflation and stabilize the foreign exchange market. Notably, the CBN disclosed its success in clearing an over $4 billion backlog in foreign exchange forwards, benefiting domestic and international businesses alike.
Furthermore, the CBN has implemented restrictions on International Oil Companies (IOCs), allowing only 50% of their foreign exchange earnings to be transferred immediately, with the remaining 50% subject to a 90-day waiting period. Additionally, commercial banks are prohibited from allocating foreign exchange sales profits toward operational costs and dividend payments.
In line with these measures, the CBN has commenced selling dollars to Bureau de Change operators at a rate of N1,251 per dollar. During its latest Monetary Policy Committee (MPC) meeting, the CBN announced a 200-basis point increase in interest rates, from 22.75% to 24.75%. Mr. Yemi Cardoso, the committee’s chairman, stated that this adjustment aims to combat the current inflation rate of 31.7% and effectively manage the foreign exchange market.
