Why the CBN adjusted the Nigeria Customs exchange rates

• The Central Bank of Nigeria (CBN) has adjusted the Nigeria Customs exchange rates for cargo clearance
• The CBN took the action as the US dollar strengthened against major currencies following Donald Trump’s election victory
• The move also follows the crash of the naira in the foreign exchange market on Wednesday, November 6, 2024

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 adjusted the Nigeria Customs exchange rates to clear goods by air and seaports.

The development follows the US dollar’s rebound against major currencies following the presidential election victory of Donald Trump.

CBN hikes FX rates for clearing goods in Nigeria's ports Credit: NCS/Bloomberg/Contributor
Source: Getty Images

The US dollar strengthens after Trump’s victory

The US dollar rose substantially against several other major currencies as Donald Trump won the presidential election. 

According to Bloomberg, the dollar gained as much as 1.7%, the most in four years, and hit its highest since November 2023.

The new Customs duty exchange rate reflects the current performance of the naira in the foreign exchange markets. 

The dollar’s strong rebound affected the Nigerian naira’s performance in the FX markets, leading to adjustment by the apex bank.

CBN hikes Customs rate amid naira’s crash

Data from the Customs trade portal shows that importers will pay about N1680.909 to clear goods in Nigeria from N1,665,91.

The development comes as the Nigerian currency crashed to its lowest in the official Nigerian Autonomous Foreign Exchange Market (NAFEM) on Wednesday, November 6, 2024.

The naira plummeted amid concerns that the CBN may have stopped its usual interventions in the forex markets to boost its performance.

Analysts worry over the naira’s fate

The FMDQ Exchange data reveals that the naira closed trading on Wednesday, October 6, 2024, at N1,681.61 per dollar.

Analysts have expressed concern over the naira’s continuous fall, saying it's time the CBN intervened to stabilise the local currency.

“As many have said, the naira will hit N2,000 officially on or before December. The best way to prevent that is to intervene in the forex markets,” Janet Ogochukwu, economist and senior banker, said.

Dollar crashes in official market as supply rises

Legit.ng earlier reported that the US dollar suffered a mild setback in the Nigerian Autonomous Foreign Exchange Market on Tuesday, November 6, 2024.

The development led to the appreciation of the Nigerian naira, gaining N6 in the official market.

The naira appreciated 0.33% in the official FX market to close at N1,671.32 per dollar from the N1,676 it traded the previous day.

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Source: Legit.ng