Customs Announces New FX Rate to Clear Goods as Naira Crashes against Dollar

• The Nigeria Customs Service (NCS) has adjusted foreign exchange rates for cargo clearance in Nigeria's ports
• The rate rose by N37 on Wednesday, July 10, 2024, following the depreciation of the Nigerian currency to N1,535 to a dollar
• The development comes amid an increase in Nigeria's foreign reserves, which rose to $34.7 billion

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

The Nigeria Customs Service (NCS) exchange rate for import duties has continued to rise, hitting N1,549 per dollar.

Analysts have said that the continued increase in Customs FX rates in July comes amid a stable exchange rate in June, which recorded fewer adjustments.

Customs duty rates increased five times in June

Last month, there were about five increases in Customs duty rates. However, in July, the Central Bank of Nigeria (CBN) adjusted the exchange rates for cargo clearance seven times.

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N1,561/$: Naira depreciates again against US dollar, traders quote new exchange rate

According to the latest data on the Customs exchange rate portal, the increase represents an N37 rise from the previous rate of N1,512 reported on July 9, 2024.

Customs and CBN are working on single rate

Experts have called for the CBN to adopt a quarterly exchange rate for customs duties. The NCS says it is already working with the apex bank to arrive at a unified rate.

This development follows the naira’s depreciation on Tuesday, July 9, 2024, in which it traded at N1,532.58 as against the N1,523 it traded on Monday, July 8, 2024.

The naira crashes against the dollar

According to FMDQ securities data, the naira closed at N1,532.28/$1 at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, July 9. 

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Traders quote new exchange rate as naira crashes again against US dollar, pound, euro

Tuesday’s rate indicates that the naira’s value depreciated by 0.57% or N8.43 against the US Dollar in the official market compared to the previous day’s N1,523.85/$1. 

The naira’s poor performance happened despite an improvement in the supply of FX into the official market. 

Legit.ng reported that banks, companies, and other players in the official window exchanged $188.19 million on Tuesday, a 35.7% or $54.73 million increase from the $133.46 million recorded on Monday.

FX reserve rises

The depreciation comes as Nigeria's FX reserve witnessed an increase of $110 million on Sunday, July 8, 2024, hitting 34.7 billion.

Data from the Central Bank of Nigeria (CBN) shows that Nigeria’s foreign exchange reserve has reached a new high of $34.7 billion after adding $110 million in 24 hours.

The reserve has gained about $316 million since the beginning of July.

The factors leading to the rise in FX reserves

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Naira plunges to three-month low amid high reserves as urge for dollar usage increases

The growth is due to several factors, including rising oil prices, improved diaspora remittances, and CBN’s plan to stabilize the local naira.

The naira crosses a new threshold in the official market

Legit.ng earlier reported that the Nigerian currency, the naira, crossed the N1,500 per dollar mark in the official and parallel markets on Wednesday, June 3, 2024.

The naira traded at about N1,512 per dollar in the official market on Wednesday, June 3, 2024, as against the N1,508 it traded the day before.

Currency dealers in the official market quoted the spot rate at a high of N1,535 per dollar and a low of N1,445.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng