Why CBN crashed exchange rate for imported goods at ports

• The Central Bank of Nigeria (CBN) has crashed the Customs exchange rate for cargo clearance
• The CBN reduced the forex rate from N1,655.92 per dollar to N1,651.292 as of Thursday, October 31, 2024
• The development comes as the naira appreciated against the US dollar in the official and black markets

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 significantly crashed the foreign exchange rate for importers to clear goods from the nation’s air and seaports.

This development comes amid the recent recovery of the local currency, the naira, in the official Nigerian Autonomous Foreign Exchange Market (NAFEM).

CBN fixes new exchange rate for cargo clearance at Nigeria's ports Credit: Bloomberg/Contributor/NCS
Source: Getty Images

The naira appreciates in all markets

Legit.ng earlier reported that the naira appreciated from N1,670 on Monday, October 28, 2024, to N1,6530 per dollar on Tuesday, October 29, 2024, due to increased dollar supplies in the FX market.

Also, the naira rallied in the parallel segment of the foreign exchange market, appreciating from N1,730 to N1,725 per dollar.

Data from the Nigeria Customs Service trade portal shows that the CBN pegged the official exchange rate for cargo clearance at N1,651.282 per dollar from N1,655.92.

The new FX rate for Customs duty means that importers opening Form M from Thursday, October 31, 2024, will pay N4 less than those who opened the form on Monday, October 28, 2024.

Nigeria experiences massive FX inflows

The new exchange rate comes amid reported forex inflow into the Nigerian economy.

According to the apex bank, the Nigerian economy experienced massive FX inflows in August 2024, hitting $57 billion.

The bank said the inflow happened as it engaged International Money Transfer Operators (IMTOs) to boost diaspora remittances.

Experts ask CBN to fix Customs rates quarterly

Experts have said that the CBN needs to peg the Customs FX rate at N1,000 to combat currency volatility.

Senior banker and analyst Janet Ogochukwu asked the CBN to adopt a quarterly approach to fixing the FX rate for cargo clearance.

CBN increases customs exchange rate to clear imported goods

Legit.ng earlier reported that The Central Bank of Nigeria (CBN) has decided to increase the Nigeria Customs duty exchange rate to clear goods at ports to N1,655.92 a dollar on Wednesday, October 23.

The new rate represents a 0.97% increase from the previous rate of N1,639.928 per dollar on Monday, October 21, 2024.

The new rate represents a 0.97% increase from the previous rate of N1,639.928 per dollar on Monday, October 21, 2024.

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Source: Legit.ng