The exchange rate for customs duty collection has increased to N1,441.53 to the USD in the past two days from N1,373.64/$ at the beginning of the month. The new figure represents an increase of N61 from the prior figure.
The new FX rate for import duties is above the official market rate of the naira as of 02 May 2024 when the naira closed at N1,402.67/$ on the official market. In the parallel market, the naira closed at N1,380 to the greenback that same day.
In the past two weeks, the naira has seen significant depreciation, having performed strongly in the month of March when it was tagged the best performing currency in the world by Goldman Sachs. The naira opened the new month on a negative note seeing a decline of 0.74% to N1,360/$ compared to the last trading day in April.
Recommended reading: CBN raises exchange rate for customs duty collection to N1,327/$
Quiet April for CBN
Liquidity concerns have trailed the recent weakening of the naira as the CBN last intervened in the FX market through dollar sales to Bureau De Change (BDCs) operators below the official market rate almost two weeks ago.
April was a relatively quiet month for the Central Bank of Nigeria (CBN) going by the flurry of reforms and policy updates seen in the first quarter of the year.
The depreciation of the naira has the potential of throwing the spanner in the works of the CBN to stabilise the exchange rate and bring down inflation. The Governor of the apex bank, Yemi Cardoso, had earlier acknowledged the pass-through effect of the elevated exchange rate on inflation.
CPPE advises the CBN
The Centre for the Promotion of Private Enterprise (CPPE) has called on the CBN to tame inflation and bring about stability to aid panning for businesses. The centre urged The CBN to adopt a uniform rate to create certainty in the trade sector.
The centre recommended a rate of N1000/$ for import duties going forward.
