As Naira Appreciates By 5.9%, Exchange Rate For Cargo Clearance Falls By 2.9% - The People's Voice


Thursday, March 28, 2024

As Naira Appreciates By 5.9%, Exchange Rate For Cargo Clearance Falls By 2.9%

By Our Correspondent

The Central Bank of Nigeria (CBN), has once again reduced the customs exchange rate for computing import Duty on cargoes imported into the country from N1405/$1 to N1364/$1.
The reduction is by 2.9% or a difference of  N40.587 between the old and the new price.

It was gathered that the reduction is the sixth time in the last two weeks.

Firstly, on the 15th of March 2024, it was reduced to  N1,612/$1 while on the 16th of March 2024, it was reduced to N1,593/$ anf on the 19th of March 2024, it was reduced to N1,572/$.

On the 23rd  March 2024, it was reduced to  N1,448/$; while on the 26th of March 2024 it was N1,405/$ and today, Thursday, 28th March 2024 it was reduced to N1364.879/$1.

To this end, importers that opened Form M, on Wednesday, will pay less to clear their cargoes as import duties are benchmarked against the dollar.

Also, importers will open Form M at a lower rate compared to those who opened Form M on Friday, 23rd March, 2024 according to the apex bank’s new directive to Customs to use the rate on the date of submitting Form M for calculating import duties.

It was gathered that the naira has continued to gather momentum in the official and parallel market.

However, the naira, on Wednesday, appreciated at the parallel section of the foreign exchange (FX) market, gaining 6.25 percent to trade at N1,350 per dollar.

Currency traders in Lagos, also known as bureau de change operators (BDCs), quoted the buying rate of the greenback at N1,300 and the selling price at N1,350 — leaving a profit margin of N50.

At the official section of the FX market, the local currency appreciated by 5.97 percent to N1,300.43/$ on Wednesday — from N1,382.95 on March 26.

At the FMDQ Exchange, a platform that oversees official FX trading in Nigeria, the naira recorded a high of N1,460 and a low of N1,200.

With a N50 difference, the official and parallel market exchange rates are nearing convergence — a situation that (at a sustained full convergence) could dry up street market patronage in favour of the official side.

On March 26, the Monetary Policy Committee of the Central Bank of Nigeria (CBN) raised the monetary policy rate (MPR) from 22.75 percent to 24.75 percent.

Speaking on the rationale behind the raise, Olayemi Cardoso, CBN governor, said the major objective of the apex bank is to manage inflation, but said the bank is not “unmindful of the impact that the interest rate increases are having”.

He said with the interest rate increases, the FX market “becomes a lot more lively” — a situation the CBN governor said is reducing the exchange rate and cost.

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