CBN Adjusts Exchange Rates For Customs Duty Clearance as Dollar Crashes in Black Market

• The Central Bank of Nigeria has hiked the Customs foreign exchange rates for cargo clearance at the ports
• The CBN increased the rate from N1,601.84 to N1,610.417 per dollar following the change in official FX rates
• The naira crashed to a four-month low on Tuesday, July 30, 2024, in the official window

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

The Central Bank of Nigeria has adjusted the foreign exchange rates for cargo clearance in Nigerian ports.

The development follows the naira's crash to a four-month low in the official window on Tuesday, July 30, 2024.

CBN hikes rates closer to official price

Data from the Customs trade portal shows that the CBN hiked the Customs exchange rates to N1,610.417 per dollar from N1,601.84.

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Dealers, banks, others buy dollars at different rates in official, parallel markets as naira crashes

Customs duties are taxes and levies paid on goods imported into the country. The duties are paid through a commercial bank to the Nigeria Customs Service, which collects them on behalf of the federal government. 

According to the apex bank's policy, Customs should use the rate when submitting Form M to calculate duties. 

The new rates are closer to the current official foreign exchange rate of the naira to the dollar as of Tuesday, July 30, 2024.

Naira crashes to four-month low

The naira dipped to the lowest in four months at N,1621 in the official window on Tuesday, July 30, 2021, as against the N1,611 it traded the day before.

The Nigerian currency has crashed for five consecutive days since Friday, July 26, 2024, when it finally crossed the N1,600 per dollar mark to trade at N1,606 and rose to N1,609, N1,611 before hitting the new low.

Read also

CBN, traders quote new exchange rates as dollar becomes cheaper to buy in black market

FX Turnover declines in official window

According to data from the FMDQ Exchange, foreign exchange turnover in the official market stood at about $166.34 million on Tuesday, July 310, 2024.

Currency dealers quoted the naira at a high of N1,635 per dollar and a low of N1,546.

Traders quote new rates for pound, euro

Legit.ng previously reported that the naira showed mixed performance against the British pound over the 30 days ending July 30, 2024.

Data showed that the naira's performance against the pound over the last 30 days saw a 30-day high of 0.0005 and a 30-day low of 0.0005.

This meant that the 30-day average was 0.0005 while the change for naira to pound was -6.99.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng