The Central Bank of Nigeria (CBN) has implemented a revision in the exchange rate for goods clearance, increasing it from N1444.56/$ to N1515.09 against the US dollar. This adjustment signifies a rise of N70.53 compared to the previous rate, as confirmed through verification on the federal government’s single-window trade portal of the customs service.
Imported cargoes passing through Nigerian ports are subject to duties imposed by the Nigeria Customs Service, with charges ranging from 5% to 35% based on the harmonized commodity and coding system (HS code).
The CBN has been consistently adjusting the exchange rate for goods clearance to harmonize with the official window. Over the past two weeks, the apex bank has made three adjustments, moving from N951.94/$ to N1356.88/$ on February 2nd, reflecting a substantial 42.7% increase before the latest adjustment.
Effects of CBN’s Initiatives:
Despite increased transactions, the local currency has experienced a historic depreciation, surpassing the N1500 threshold this month. CBN Governor Yemi Cardoso, during a senate appearance, highlighted that FX market transactions have exceeded $1 billion for the first time in years, attributing this surge to the series of reforms initiated by the apex bank.
These reforms include discontinuing the CBN development finance program, removing the cap on interbank transaction spreads, and others aimed at discouraging arbitrage and boosting inflows, particularly from the diaspora.
In a speech at the Nigerian Economic Summit Group (NESG), the governor expressed confidence that the naira is undervalued and emphasized that with ongoing reforms, the currency will attain its true value.
According to the Nairametrics daily FX monitor, the naira closed at N1503 to the USD yesterday, indicating a marginal 0.26% depreciation amidst these developments.
Credit: Nairametrics
