CBN Slashes Customs FX Rate For Duty Collections as Black Market Traders Crash Dollar

• The Central Bank of Nigeria (CBN) has reduced the Customs FX rates for duty collections in Nigerian ports as the naira gained
• Data from the NAFEM shows that the naira exchanged for N1,468.99 per dollar as against the N1,497
• The naira’s recovery comes amid increased FX turnover in the forex market at $161.41 million

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

The exchange rate for good clearance by the Nigerian Customs Service (NCS) has dipped from N1,500 per dollar to N1,481, a N19 reduction following the naira’s appreciation in the official market.

This comes as the naira appreciated in the official market by 1.93% on Monday, May 20, 2024.

Naira recovers for the second time in a week

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The Nigerian currency, the naira, recovered against the US dollar for the second day in the official market in one week.

The naira appreciated N1,468.99 per dollar on Monday, May 20, 2024.

The new rate represents a 1.93% increase compared to the N1,497 per dollar on Friday, May 17, 2024.

The naira recorded a 2.5% decline from N1,593 per dollar on Thursday, May 16, 202, the weakest since March this year.

Data from FMDQ Exchange shows that the forex exchange market experienced a market turnover of $161.41, a 93.31% increase from the $83.5 million recorded on Friday, May 17, 2024. Analysts say this contributed to the rise in the naira’s value.

Dollar supply increases

The increase in FX liquidity on the market comes after the daily turnover in the market declined between Thursday, May 16, and Friday, May 17, 2024.

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The lowest foreign exchange turnover since January this year was on Friday, May 17, 2024, at $83.51 million.

Reports say Forex traders quoted the dollar at an intraday high of N1,550 and a low of N1,400 per dollar.

Analysts say the naira is being hammered by a lack of FX liquidity, which has continued to pressure the local currency.

They pointed out that the Central Bank of Nigeria (CBN) had not sold FX to Bureau de Change (BDC) operators in the last three weeks, making it challenging for the local currency to rise to par.

A previous report by Legit.ng shows that the naira is declining against other currencies, including the pound sterling and the euro.

CBN adjusts Customs FX Rate

Legit.ng reported that the Central Bank of Nigeria (CBN) has adjusted the foreign exchange rate for import duties to N1,530 per dollar.

The increase represents a 6.13% increase compared to the N1,441.58 adopted on May 6, 2024.

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CBN adjusts Customs FX rate for cargo clearance as dollar crashes

The adjustment was observed on the Nigerian government’s single window trade portal on Friday, May 17, 2024.

Source: Legit.ng