CBN Crashes Customs FX Rates For Cargo Clearance as Import Duty-Free Window Begins
- The Central Bank of Nigeria (CBN) has crashed the exchange rates for cargo clearance in Nigeria’s ports
- The bank reduced the rate from N1,583 per dollar to N1,579 despite the naira’s crash in the official market
- The development comes as the Nigerian government began a six-month duty-free import of essential food items
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 adjusted the exchange rates for cargo clearance in Nigeria’s ports.
The apex bank crashed the rate from N1,583 per dollar to N1,578.265 despite the official exchange rate crashing to N1,579.89.
Naira crashes in the official market
Data from the FMDQ Exchange shows that the naira depreciated from N1,564.4 per dollar to N1,579.89 on Friday, August 16, 2024, showing that the naira depreciated by N15.49.
According to reports, the volume of dollars traded in the official market declined by 22.7 per cent to $115.23 million from $149.24 million recorded on Friday, August 16, 2024.
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The gap between official and black markets narrows
Meanwhile, on Thursday, August 15, 2024, the margin between the parallel market and the official rate narrowed to N10.11 per dollar from N20.52 after the naira depreciated to N1,590 per dollar in the black market.
The development comes as the Nigerian government began a six-month duty-free window to import essential food items.
The move will allow Nigerians to import essential food items into the country to tame the rising food inflation.
Nigeria to lose over N180 billion on import duty
According to the Nigerian Customs Service, the Nigerian government will forfeit about N187 billion on import duty during the policy period.
The Comptroller General of Customer, Adewale Adeniyi, disclosed this on Tuesday, August 13, 2024, in Abuja at the second Economic Confidential Lecture.
Daily Trust reported that Adeniyi disclosed that wheat alone generated about N3 trillion, maize accounted for N340 billion, rice for N185 billion, and beans for N146 billion.
He disclosed that the Customs Service will wait for the Ministry of Finance guidelines and ensure adequate implementation by enrolling special corridors to clear food items.
Food reform to reduce inflation
Vice President Kashim Shettima said the government's food reforms will positively impact the economy.
The development follows a directive by the Nigerian government to cut essential food prices by waiving customs duty.
The government gave importers a 150-day window to bring approved food items into the country via sea, land, and air.
FG announces rise in CBN’s foreign reserves
Legit.ng earlier reported that Nigeria's foreign reserves have witnessed a significant increase of $4 billion over the past seven months.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy disclosed while speaking at a meeting organized by the Debt Management Office (DMO) for the issuance of the $500 million local bond set to kick off on Monday, August 19.
Edun attributed this growth to robust fiscal policies and reforms aimed at enhancing revenue collection efficiency across various sectors.
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Source: Legit.ng
