In Just 24 Hours, CBN Changes Official Naira to Dollar Exchange Rate, Expert Reacts

• The Central Bank of Nigeria has once again adjusted the official naira to dollar foreign exchange rate
• The new rates reflect the performance of the naira against the dollar in the NAFEM window
• Muda Yusuf, the CEO of CPPE, provided insights in a statement to Legit.ng on the implication of the new exchange rate

Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

The Central Bank of Nigeria (CBN) has readjusted the official exchange rate on the Customs platform, the second review in less than 24 hours.

Data obtained from the federal government trading portal showed that from Monday, February 5, 2023, importers will now pay N1,413.62/$1.

This is an increase from N1,356.883/$1 on Friday, February 2, 2023, and also the previous rate of N951.941/$1 on Thursday, February 1, 2023.

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Timeline of exchange rate changes

In recent months, the CBN has made several adjustments to the foreign exchange rate on the Customs trade portal.

On June 24, 2023, the CBN adjusted the exchange rate from N422.30/$1 to N589/$1. Subsequently, on July 6, 2023, it was further adjusted to N770.88/$1.

On November 14, 2023, another adjustment brought it to N783.174/$1. Later, on December 7, 2023, the rate was adjusted to N951.941/$1.

By Friday, February 2, 2024, it had risen to N1,356.883/$1 and currently stands at N1,413.62/$1, Punch reports.

Expert reacts to CBN changes

Speaking on the new exchange in a chat with Legit.ng, Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), said the increase in the exchange rate will further worsen the woes of importers.

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His words:

“We have enough problems with the exchange rate. Now we are having an additional burden of import duty hike because it is like increasing import duty across the board maybe by another 15 percent or more; that is what it is."

He stressed that it would also reduce trade as the cost of imports would soar.

“The government, through her policy, is pushing more people into poverty. Nobody should blame Customs; it is the Government that should be blamed. With the rise in the exchange rate, people will not import because the way you look at it, how do you get foreign exchange to import?”

"it takes to sustain this suffering. The government should intervene before it results in a crisis."

CBN, FG not converting domiciliary accounts

Meanwhile, the Nigerian government and the Central Bank of Nigeria have responded to reports suggesting plans by the government to convert funds in domiciliary accounts to naira.

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Expert speaks on naira to dollar exchange rate as banks sell above N1,500/$ at official market

Over $30 billion is reported to be sitting idle in accounts across Nigerian banks, including Access, GTB, UBA, Zenith, and others.

The report claims the move will help the naira recover in the forex market and boost forex supply in Nigeria.

Source: Legit.ng