The Central Bank of Nigeria (CBN) has announced a reduction in the exchange rate for cargo clearance at Customs area command. The new rate stands at N1572.50, down from N1593.41 just two days ago, marking a significant drop of N20.91 in a short span of time.
This adjustment comes against the backdrop of a stabilizing naira, which has been fluctuating within the range of N1500 to N1650. Notably, the exchange rate for customs cargo clearance has closely tracked the prevailing official market rate in recent days.
According to data provided by the Nairametrics daily FX monitor, the official exchange rate closed at N1560.57/$1, while the parallel market rate stood at N1600 to the USD. The minimal difference of N11.93 between the official market rate and the recent customs cargo clearance rate supports the CBN’s decision to base the clearance rate on the official market rate.
This move aligns with the broader efforts of the CBN to reform the forex market, aiming for greater transparency and efficiency. The convergence of exchange rates between the official and parallel markets further solidifies the CBN’s forex market unification reform initiated in June 2023.
Responding to concerns regarding fluctuations in the Customs FX rate following currency devaluation, the CBN issued a circular clarifying the process for import duty assessment. The circular stipulates that the exchange rate on the date of creating Form M should be utilized for this purpose. The CBN has advised the Nigeria Customs Service and other stakeholders to adopt this FX rate, which remains valid until the termination of the importation and clearance of goods by the importers.
The Comptroller General of the Nigeria Customs Service (NCS) reiterated that the service does not determine the exchange rate but follows directives from the apex bank.
As Nigeria continues to navigate economic challenges, the latest adjustment in the cargo clearance exchange rate underscores efforts to maintain stability and transparency in the forex market, ensuring a conducive environment for trade and commerce.
Credit: Nairametrics (Text Excluding Headline)