In a move to align with prevailing market conditions, the Central Bank of Nigeria (CBN) has adjusted the exchange rate for the clearance of goods from N1444.56/$ to N1515.09 against the US dollar.
This adjustment represents an increase of N70.53 compared to the previous rate.
A review of the federal government’s single-window trade portal of the customs service confirms the updated exchange rate, reflecting the CBN’s decision to revise the rate upward.
Imported cargoes passing through Nigerian ports are subject to duties imposed by the Nigeria Customs Service before clearance. These duties vary from 5Â Â per cent to 35 per cent based on the harmonized commodity and coding system (HS code) classification.
The CBN has been periodically adjusting the exchange rate for goods clearance to mirror the rates prevailing in the official window. Over the past two weeks, the apex bank has made three adjustments, raising the rate from N951.94/$ to N1356.88/$ on February 2nd, marking an increase of 42.7 per cent, before the recent adjustment.
Despite increased transaction volumes, the local currency has experienced significant depreciation, surpassing the N1500 mark against the US dollar this month.
Governor of the Central Bank, Yemi Cardoso, noted in his senate appearance that the volume of transactions in the foreign exchange market has exceeded $1 billion, a milestone achieved for the first time in years.
Cardoso attributed the surge in transaction volumes to various reforms implemented by the apex bank, including the discontinuation of the CBN development finance program and the removal of the cap on the spread of interbank transactions. These reforms, he stated, are aimed at curbing arbitrage and increasing inflows, particularly from the diaspora.
Speaking at the Nigerian Economic Summit Group (NESG), Governor Cardoso expressed confidence that the naira is undervalued and emphasized that with the ongoing reforms, the currency will eventually attain its true value.
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