The exchange rate for cargo clearance decreased to N1593.41/$, which represents a decrease of about N18.87 from last week’s record value of N1612.28.
The Central Bank of Nigeria, through the customs, raised the exchange rate for cargo clearance by N18.44 compared to its previous value. The decline in the exchange rate for cargo clearance is a reflection of the strengthening of the naira on the foreign exchange market recently, according to nairametrics.
The naira closed at N1602.75 on the last trading day of last week 15th March 2024 according to data from FMDQ.
In the last few weeks, the volatility that accompanied the second devaluation of the naira in the year has largely subsided. The gap between the official rate and the parallel market rate has largely been narrowed recently.
The exchange rates are almost identical in both public and parallel foreign exchange markets, which represents a significant success of CBN’s policy to unify currency markets.
In both markets, although not identical, the exchange rates varied between N1590 and N1630, resulting in a difference of less than 2%.
This is particularly low compared to the usual 5 % for both public and parallel market rates. The apex Bank had in February discontinued the ±2.5% cap spread on the interbank FX transactions.
Recall, that the Central Bank of Nigeria, last week repeated its previous warnings to banks on the use of foreign exchange revaluation gains to pay dividends and operating costs.
It stated that gains from FX Revaluation should be set aside as a buffer in the event of insufficient liquidity in the market.
