The Central Bank of Nigeria has reduced the exchange rate for customs import duties collection, marking the lowest level seen in eight weeks.
The customs exchange rate window indicates a decrease in the rate for duties collection from N1405/$ to N1303.8 against the USD, according to Nairametrics.
This signifies a notable decline of N102 or 7.24% within a span of just 48 hours. The current FX rate of N1303/$ stands as the lowest observed since February 2nd, 2024, when the exchange rate for customs duties was at N1356.8/$.
The consistent reduction in the customs exchange rate for duties collection mirrors the appreciation of the naira in both the official and parallel markets over the past two weeks. The Nigeria Customs Comptroller-General previously mentioned in an interview that the exchange rate for duties collection would be determined by the CBN based on the official market rate.
Recent trends highlight a steady decline in the value of the USD relative to the naira, indicating the naira’s strengthening against other currencies across both the parallel and official foreign exchange markets. Within the past fortnight, the naira has experienced a significant uptick in its value, climbing from N1,615 per dollar on March 13th to N1,382 per dollar by March 26th.
Yesterday’s closure of the exchange rate at N1309/$1 on the official NAFEM window further underscores the impact of CBN’s recent policies and reforms on the forex market. Additionally, the forex market witnessed a daily turnover of $857 million, marking the largest volume recorded since 2021 according to Nairametrics data.
Following the CBN’s recent Monetary Policy Committee (MPC) meeting, wherein it raised the interest rate by 200 basis points from 22.75% to 24.75%, the apex bank announced an inflow of $1.5 billion into the economy. The bank attributed the significant FX returns to investors’ confidence in its efforts to stabilize the foreign exchange market.
