CBN Slashes Customs Exchange Rate to 8-Week Low, Reflecting Naira’s Appreciation
The Central Bank of Nigeria (CBN) has made a significant move by reducing the exchange rate for customs import duties collection, marking the lowest rate in eight weeks. According to Nairametrics, the exchange rate for duties collection has dropped from N1405/$ to N1303.8 to the USD, indicating a notable decrease of N102 or 7.24% within a 48-hour period.
This decline reflects the naira’s recent appreciation against the US dollar, both in the official and parallel markets. The current rate of N1303/$ is the lowest seen since 2nd February 2024, when the exchange rate for customs duties was N1356.8/$.
The Nigeria Customs Comptroller-General had previously mentioned in an interview that the exchange rate for duties collection would be determined by the CBN based on the official market rate. The consistent decrease in the customs exchange rate aligns with the naira’s overall appreciation in recent weeks.
In the past two weeks alone, the naira has shown a significant increase in value, rising from N1,615 per dollar on March 13th to N1,382 per dollar by March 26th. This upward trend signifies the naira’s strengthening relative to other currencies in both the parallel and official foreign exchange markets.
Recent developments also indicate positive outcomes from the CBN’s recent Monetary Policy Committee (MPC) meeting, where 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, attributing the significant FX returns to investors’ confidence in its efforts to stabilize the foreign exchange market.
The exchange rate closed at N1309/$1 on the official NAFEM window yesterday, reinforcing the impact of CBN’s recent policies and reforms. Additionally, the forex market witnessed a daily turnover of $857 million, the largest since 2021, according to Nairametrics’ records.
Nairametrics
