Again, CBN Slashes Customs FX Rate for Cargo Clearance after Naira Gains 7 Days in a Row
- The Central Bank of Nigeria (CBN) has cut the foreign exchange rates for importers to clear goods at the ports
- The CBN slashed the rate from N1,583.527 to N1,57.09 per dollar following the seven days gains of the naira
- However, the naira slumped again on Tuesday, August 13, 2024, following a decline in FX turnover at NAFEM
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Central Bank of Nigeria (CBN) has slashed the exchange rates for Cargo clearance following the naira's sustained gains against the dollar in the past seven days.
The Nigerian currency had maintained a momentous gain against the US greenback after a series of interventions by the apex bank.
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CBN intervenes in FX markets to raise naira’s value
Two interventions by the CBN propelled the naira below the N1,600 per dollar ceiling.
On Wednesday, August 7, 2024, the apex bank sold Forex to 26 dealer banks via the Retail Dutch Auction System (rDAS).
On Friday, August 9, 2024, the apex bank intervened again by selling over $800 million to dealers to reduce the demand for FX, which it said is hurting the naira.
Data from the Customs trade portal shows that the CBN slashed the Customs FX rate to N1,573.09 per dollar from N1,583.527.
The development means that importers wishing to open Form M would pay less to have their cargo cleared at Nigerian ports.
The naira crashes in the official market
However, the naira crashed after days of sustained gains in the foreign exchange market.
Information from FMDQ Exchange shows that the Nigerian currency slumped to N1,582.09 on Tuesday, August 13, 2024, from the N1,570.99 it traded the previous day.
Buyers quoted the dollar at an intraday high of N1,607.50 per dollar and a low of N1,496, while FX turnover also crashed to $201.43 million.
The development comes as the Nigerian Customs is set to begin the 150-day duty-free window ordered by the Nigerian government.
The Customs Comptroller General Adewale Adeniyi has forecasted a N188 billion loss to the Nigerian government over implementing the policy.
CBN crashes dollar in official market
Legit.ng earlier reported that the CBN had slashed the foreign exchange rate for duty clearance in Nigerian ports.
According to information from the Customs trade portal, the apex bank reduced the rate from N1,588 per dollar to N1,583.527 as of Friday, August 9, 2024.
This development follows the stellar performance of the Nigerian currency, the naira, last year, which sustained gains against the US dollar.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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Source: Legit.ng
