The Central Bank of Nigeria (CBN) has announced an adjustment in the exchange rate for the clearance of goods, increasing it from N1444.56/$ to N1515.09 against the USD. This marks a noteworthy rise of N70.53 compared to the previous rate, reflecting the CBN's continued efforts to align official exchange rates with market dynamics.
The federal government's single-window trade portal of the customs service confirms this adjustment, signaling an upward shift from the former rate of N1444.56 to the new rate of N1515.09. This alteration holds implications for importers and exporters, as duties imposed by the Nigeria Customs Service on imported cargoes are influenced by the exchange rate, ranging from 5% to 35% based on the harmonized commodity and coding system (HS code).
The CBN's consistent adjustments in the exchange rate for goods clearance have become a focal point, with the rate undergoing three changes in the last two weeks alone. The apex bank's actions, from N951.94/$ to N1356.88/$ on the 2nd of February and now to N1515.09/$, represent a cumulative increase of 42.7%.
The effects of these reforms on the local currency have been evident, as the naira recently crossed the N1500 mark, marking a record depreciation despite increased transaction volumes. Governor Yemi Cardoso, in his Senate appearance, attributed the surge in transactions, crossing $1 billion for the first time in years, to the apex bank's ongoing reforms. These reforms include the discontinuation of the CBN development finance program, removal of the cap on the spread of interbank transactions, and other strategic measures aimed at discouraging arbitrage and boosting inflow, particularly from the diaspora.
Addressing the Nigerian Economic Summit Group (NESG), Governor Cardoso expressed confidence that the naira is undervalued and anticipates that, with the current reforms, the currency will find its true value. As of the latest update, the naira closed at N1503 to the USD, indicating a marginal depreciation of 0.26%, as reported by Nairametrics daily FX monitor. The story unfolds against a backdrop of ongoing economic adjustments and policy shifts, emphasizing the dynamic nature of Nigeria's financial landscape.
Source: Nairametrics
