The exchange rate charged by the Nigerian Customs Service (NCS) for cargo clearance and import duties collection has dropped significantly from N1,572.5/$ to N1,448.38 to the USD.
This is a reduction of N124.12 from the previous figure.
The new figure reflects the prevailing exchange rate on the CBN’s official window. Nairametrics earlier reported the naira closing at N1431 to the USD at the close of trade last week.
The exchange rate for import duties payment on the customs portal has been on a steady decline in the past two weeks mirroring the strengthening of the naira in the FX market. The exchange rate for cargo clearance peaked at N1,624.7/$1 on March 12, 2024, before the gradual decline to the current figure.
The Nigeria Customs had earlier stated that the exchange rate for cargo clearance will follow the CBN’s official rate.
Recommended reading: Customs exchange rate for cargo clearance drops to N1593
Implication of recent reforms on exchange rate
The apex bank on the other hand had addressed the frequent changes on the customs exchange rate and the attendant confusion stating that the exchange rate on the date of opening the ‘Form M’ will be used for import duties assessment.
The CBN in recent times has instituted a motley of reforms aimed at stabilising the forex market, dispelling speculations, eradicating distortions and strengthening the value of the naira.
The near parity between the official and parallel market exchange rates signifies the successful implementation of the Central Bank of Nigeria’s (CBN) foreign exchange market reforms in recent times.
CBN’s MPC meeting
This week, the Central Bank will hold its second monthly Monetary Policy Committee (MPC) in 2024 where it would decide to either hold MPR or increase it as part of measures to strengthen the naira and reduce inflation rate across the country.
In its last MPC meeting, the apex bank increased MPR by 400 basis points from 18.75% to 22.75% last month.
Recommended reading: CBN further reduces exchange rate for cargo clearance by N20.91
