Customs exchange rate for import duties increases to 1,441 naira/$, above the official rate

The exchange rate for customs duty collection has increased to 1,441.53 naira per dollar in the last two days from 1,373.64 naira per dollar at the beginning of the month. The new figure represents an increase of N61 from the previous figure.

The new exchange rate for import duties is above the official market rate of the naira as of May 2, 2024, when the naira closed at N1,402.67/$ in the official market. In the parallel market, the naira closed at 1,380 naira to the dollar on the same day.

In the last two weeks, the naira has seen significant depreciation, having performed well in the month of March, when Goldman Sachs rated it the best performing currency in the world. The naira opened the new month on a negative note, falling 0.74% to N1,360/$ compared to the last trading day of April.

Recommended Reading: CBN increases exchange rate for customs duty collection to 1,327 naira/$

Quiet April for CBN

Liquidity concerns have followed the recent weakening of the naira when the CBN last intervened in the foreign exchange market by selling dollars to bureau de change (BDC) operators below the official market rate almost two weeks ago.

April was a relatively quiet month for the Central Bank of Nigeria (CBN), due to the flurry of reforms and policy updates seen in the first quarter of the year.

The news continues after this announcement.

The news continues after this announcement.

The depreciation of the naira has the potential to derail the CBN’s work to stabilize the exchange rate and reduce inflation. The governor of the main bank, Yemi Cardoso, had previously recognized the transmission effect of the high exchange rate on inflation.

CPPE advises the CBN

The Center for the Promotion of Private Enterprise (CPPE) has asked the CBN to control inflation and create stability to help business planning. The center urged the CBN to adopt a uniform rate to create certainty in the commercial sector.

The center recommended a rate of N1000/$ for import duties in the future.