CBN leaves customs FX rate for cargo clearance unchanged for 3 weeks as naira nears N1,500/dollar

The Central Bank of Nigeria has left the exchange rate for import duties unchanged in the last three weeks as the official forex rate hovers around N1,485 per dollar.

The FX rate stayed at N1,474 per dollar for the last three weeks, the longest it has been since January 2024, before crashing on Monday, June 24, 2024.

Importers would expect an adjustment following the recent crash of the Nigerian currency against the US dollar.

The development comes as the naira relatively stabilized in the past few weeks following months of volatility that has seen it crash near N1,500 per dollar. Information obtained from the Customs exchange rate portal shows that the FX rate for cargo clearance has been adjusted once since June, decreasing from N1,482 per dollar to the current rate.

According to data from the FMDDQ Exchange, the naira hovered around N1,474.12 per dollar as of June 21, 2024.

Customs promise stable duty rates

Experts have criticized the CBN's frequent changes in the Customs duty rate, prompting the Comptroller General of Customs to promise to work with the CBN to provide a stable rate for cargo clearance.

The experts said that the apex bank and Customs should work out a plan to adjust the rate quarterly.

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, Taiwo Oyedele, recommended to the Presidency that the Customs Exchange rate be pegged at N800 per dollar.

Naira sees the biggest fall in weeks

The development came as the naira experienced its biggest fall in weeks on Monday, June 24, 2024, exchanging for N1,490.20 per dollar as against the N1,1485 it exchanged on Friday, June 21, 2024.

Currency dealers quoted the naira at an intraday high of N1,505 per dollar and a low of N1,411 in the official market.

Daily FX turnover in the official market stood at $152 million as demand for the US greenback rose.

However, the naira depreciated in the parallel market, also known as the black market, where it was sold for N1,500 per dollar.

The street traders blamed the dollar scarcity for the crash in the naira’s value.

Experts blame CBN’s policy Experts blamed CBN’s lack of FX sales to Bureau de Change (BDC) operators for the naira’s crash.

Oluwaseun Ogedengbe, a forex trader, disclosed that the $10,000 weekly FX sales to BDCs were very helpful and lifted the pressure on the naira.

"CBN has a lot of work to do to stabilize the naira in the coming weeks especially after it stopped selling dollars to BDCs. We predicted that the naira would crash further if CBN ends intervention in the market and the result is what we are seeing now.

"As I speak, there is a forex scarcity and it is negatively impacting the naira."

CBN reportedly ends forex sales to BDC operators

Legit.ng earlier reported that a new report has indicated that the Central Bank of Nigeria (CBN) may have finally stopped funding Bureau de Change Operators (BDCs).

The report, which emerged recently, states that the apex bank wants to further liberalize the FX market by testing its reform template and minimize quick fixes by applying mechanical approaches to institutional processes in FX market management.

It said that the CBN is currently reviewing significant policies to strengthen the implementation or tweak its reforms.