The exchange rate for customs duty collection has surged to N1,441.53 against the US dollar over the past two days. This marks a significant jump from N1,373.64/$ recorded at the start of the month, reflecting an increase of N61.
This new FX rate for import duties surpasses the official market rate of the naira, which stood at N1,402.67/$ as of May 2, 2024. Concurrently, in the parallel market, the naira closed at N1,380 to the greenback on the same day.
Over the past fortnight, the naira has experienced notable depreciation, contrasting its robust performance in March when it earned the title of the world’s best-performing currency by Goldman Sachs. However, the currency kicked off the new month on a negative trajectory, witnessing a 0.74% decline to N1,360/$ compared to the previous trading day in April.
Amidst these developments, liquidity concerns have surfaced, particularly as the CBN’s recent interventions in the FX market, involving dollar sales to Bureau De Change (BDCs) operators below the official rate, occurred almost two weeks ago.
April notably marked a subdued period for the Central Bank of Nigeria (CBN), following a flurry of reforms and policy updates in the year’s first quarter.
The naira’s depreciation poses challenges to the CBN’s efforts to stabilize the exchange rate and curb inflation. Governor Yemi Cardoso of the apex bank has previously acknowledged the pass-through effect of elevated exchange rates on inflation.
In response to these dynamics, the Centre for the Promotion of Private Enterprise (CPPE) has urged the CBN to address inflation and promote stability to facilitate business planning. The center advocates for the adoption of a uniform rate, proposing N1000/$ for import duties moving forward.
