CBN Hikes Customs Exchange Rates For Cargo Clearance by 11.1% as Naira Crashes in All Markets
- The Central Bank of Nigeria (CBN) has adjusted Customs Exchange rates for cargo clearance in Nigeria’s ports
- The development came after the naira dropped about 12% of its value in the week against the US dollar
- The naira has been on a losing streak against the US dollar despite a spike in forex turnover in the FX market
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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 hiked the exchange rates for cargo clearance in Nigeria’s ports by 11.1% following the crash of the naira against the dollar in the foreign exchange market.
According to information on the official trade portal of the Nigerian Customs Service, the CBN increased the Customs Forex duty rate from N1,150.16 per dollar to N1,277.526 on Thursday, April 25, 2024.
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Naira lost N139 in four days
The increase represents 11.1% compared to the old rate of N1,150 per dollar previously used for opening Form M and an increase of N127.366 per dollar required to clear goods at the ports.
The development follows the crash of the Nigerian currency in the official and parallel markets on Thursday, April 25, 2024.
The naira exchanged for N1,309.88 per dollar, a 12% decline on the NAFEM.
The Nigerian currency has lost about N139.89 or 12% in the last four days compared to the N1,169 per dollar the naira traded the previous week.
How the naira depreciated in a week
The naira closed weaker against the dollar on Monday, April 22, 2024, when it traded at N1,234 per dollar.
The naira’s value dropped despite the rise in forex turnover from $89 million to $110 million in the FX market.
By Tuesday, April 23, 2o24, the naira’s value had dropped further to N1,300.15 per dollar, with the trader quoting the spot rate as high as N1,317 and N1,000 per dollar.
Forex turnover rises despite naira’s fall
According to reports, the forex market recorded an FX turnover of $133.65 million as of Tuesday, April 23, 2024.
By Wednesday, April 24, 2024, the naira’s value fell to N1,308.5 per dollar, with traders quoting a high of N1,367 and N1,098 per dollar. Turnover rose to $197.54 million.
As of Thursday, April 25, 2024, the naira dropped to its lowest value in a week at N1,309.88 per dollar, with an intraday high of N1,439 and a low of N1,000 and a turnover of $318 million.
Market demand pushes down the naira’s value
Currency dealers noted that the fall in the naira’s value is due to market demands that outstrip supply.
The apex bank sold forex to Bureau de Change (BDC) operators to ease market scarcity.
This implies that importers opening Form on Friday, April 26, 2024, will need more money to pay for import duties than those who opened Form M earlier in the week.
By implication, importers opening Form M today will require more money to pay import duties than those who opened Form M earlier in the week.
Naira crashes again in all markets
Legit.ng earlier reported that the Nigerian currency weakened in all the markets, with the black market being the hardest hit.
On Friday, April 19, 2024, the parallel market weakened by the most in over a month, ending a massive rebound from early March.
In the black market, the naira traded for N1,230 per dollar on Friday, April 19, 2024, declining by 17% compared to the N1,050 it traded the day before.
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Source: Legit.ng
