CBN
Customs adjusts FX rate for duties clearance twice in four days
The exchange rate for customs duties clearance has been changed for the second time in less four days.
Checks on the exchange rate window of the Nigeria Customs Service exchange rate portal shows that the exchange rate has been adjusted for the second time since 18th April 2024.
Nairametrics earlier reported that the exchange rate for import duties clearance dropped from 1238/$- a decline of N91. The service has also changed the exchange rate for duties collection to N1150/$ today.
The Central Bank of Nigeria (CBN) had earlier stated in response to complaints over the frequent changes in the Customs’ Fx rate that the exchange rate on the data of the Form M application will be used in calculating the duties collection.
The Nigeria Customs Service (NCS), in collaboration with the Central Bank of Nigeria (CBN), regularly adjusts the exchange rate to align with the official market rate on the NAFEM window, resulting in frequent changes in the rate.
Movements in the FX Market
Last week, the naira closed at N1,169.99/$ on the official market. On the parallel market, the naira posted a 15% weekly decline to end the week at N1,050/$.
Over the past month, the naira has significantly strengthened in both the official and parallel markets, thanks to reforms implemented by the Central Bank of Nigeria (CBN). These reforms include selling USD to Bureau De Changes (BDCs) at N1101/$ and cash pooling for International Oil Companies (IOCs), which limits the amount of foreign exchange they can repatriate immediately, among other measures.
The CBN Governor, Yemi Cardoso during the just concluded World Bank/IMF spring meeting reference a Goldman Sachs report that the naira is the best performing currency in the world stating that the bank has moved away from have transitioned from firefighting to strategic planning across key areas.
