Why CBN adjusted the Customs exchange rates above the official rate

• The Central Bank of Nigeria (CBN) has adjusted the Customs exchange rates for duty clearance
• The apex bank increased the rate by N38 to N1,520 to N1,558 above the official exchange rates
• The change is the second time this week that the Customs FX rate will changed by the apex bank despite the rise in FX turnover in the official market

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

The FX rate for Customs duties has increased from N1,520 per dollar to N1,558.

The current figure represents an increase of N38 from the previous rate and is higher than the closing rate of the naira against the dollar, which is N1,554.66 per dollar.

The Central Bank of Nigeria has fixed new Customs foreign exchange rates for duty clearance Credit: NCS
Source: Facebook

CBN adjusts Customs rates as the naira appreciates

The Nigerian currency had crashed during the week to N1,561 to the dollar in the official market,

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Despite the naira’s depreciation, foreign exchange turnover in the official market has risen consistently.

According to data from the FMDQ Exchange, FX turnover in the official market surged to $348.88 in the official market.

Data from the Customs trade portal reveal that the CBN had reduced the Customs rate earlier in the week from N1,549 to a dollar to N1,520 before the recent increase.

FX reserves rise to highest in 12 months

The move indicates the naira’s depreciation in the official market, as Nigeria's foreign reserve increased to $35.05 billion.

Data from the Central Bank of Nigeria indicates that Nigeria’s reserves have increased since July 2024.

Reserves hit the highest for the first time under Tinubu

Analysis shows that the country’s reserves reached their highest level since May 30, 2023, at N35.09 billion, 14 days before the naira devaluation and foreign exchange unification of June 2023.

This is the first time under President Bola Tinubu that the country’s reserves crossed that threshold.

According to analysts, the FX policies of the CBN may have boosted the FX reserve, including financial commitment from Afreximbank and the World Bank via loans. 

Naira reverses gain, crashes in official, black markets

Legit.ng earlier reported that the Nigerian naira depreciated against the US dollar on Monday, July 8, 2024, despite improved Forex turnover in the official foreign exchange market.

Willing buyers and sellers quoted the US greenback at N1,523 per dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM), where the dollar is traded officially.

After several days of depreciating in the official market, the naira was exchanged for N1,509 on Friday, July 5, 2024.

Source: Legit.ng