The exchange rate for cargo clearance has dropped to N1593.41/$ from N1612.28/$ recorded last week representing a drop of about N18.87.
Last week, the CBN through the customs service increased the exchange rate for cargo clearance by N18.44 to the prior figure. The drop in exchange rate for cargo clearance mirrors the recent strengthening of the naira on the forex market.
The naira closed at N1602.75 on the last trading day of last week 15th March 2024 according to data from FMDQ
Recommended reading: CBN adjusts exchange rate for cargo clearance to N1515.09
Convergence of official and parallel market rate
The volatility that accompanied the second devaluation of the naira earlier in the year has largely subsided in the past few weeks. Recently, the chasm between the official market rate and the parallel market rate have largely come at par.
Nairametrics earlier reported that exchange rates in both the official and parallel markets are nearly equal, indicating significant success of the implementation of the CBN’s forex market unification policy.
According to the research, the exchange rate has maintained an average of N1600/$1 in both the official and parallel markets.
While not identical, fluctuations have seen rates ranging between N1590 and N1630 in both markets, resulting in an exchange rate disparity of less than 2%.
This is notably lower than the commonly accepted 5% premium between official and parallel market rates. The apex Bank had in February discontinued the ±2.5% cap spread on the interbank FX transactions.
Recommended reading: Customs to use exchange rate on date of ‘Form M’ for import duty assessment – CBN
CBN’s directive to banks on the use of FX gains
Last week, the Central Bank of Nigeria reiterated its earlier warnings to banks on the use of FX revaluation gains for paying dividends and running operational cost.
It stated that gains from FX Revaluation should be set aside as buffer in the event there is not enough liquidity in the market. In 2023, financial institutions including banks realised significant returns from the FX revaluation.
However, the fate of companies in manufacturing, consumer goods and even telecoms was different as they were hit with significant levels of FX losses.
