Despite expert advice, the Central Bank of Nigeria (CBN) has again adjusted the Customs exchange rates for cargo at Nigerian ports.
The apex bank fixed the exchange rate for Customs duty collection at N1,441.53 per dollar from the N1,373.64 it fixed the rate two days ago.
The figure represents an increase of N61 from the former amount.
The current figure is above the official exchange rate of May 2, 2024, when the naira closed at N1,402.67 per dollar.
The naira closed at N1,380 per dollar in the parallel market on May 2, 2024.
Reports say the naira has depreciated against the US greenback after performing strongly in March and April, becoming the world’s best-performing currency.
The Nigerian currency opened the month of May on a negative note, declining by about 0.74% to N1,360 per dollar compared to the last trading day in April.
The foreign exchange market has witnessed improved liquidity in March and April, rising to $7.3 billion.
According to data from the FMDQ Exchange, FX sales records show improved liquidity in the market, as $4.7 billion in transactions were recorded in March 2024.
Analysts believe that the FX sales to the operators spurred the naira’s performance in April, making the Nigerian currency the world’s best-performing currency.
The naira appreciated in the official market on Tuesday, April 30, 2024, to trade at N1,390 per dollar, up from N1,419 on Monday, April 29, 2024.
The naira has been on a downward spiral for eight straight days, losing about 5.5% in value, the highest loss since March 13 this year.
Punch reports that the naira dropped in value following slowed inflows and sustained withdrawals by the Foreign Portfolio Investment.
On Tuesday, April 30, 2024, the naira reached an intraday high of N1,450 per dollar, up from the previous day’s N1,451.
Experts believe the naira’s recent decline is due to a liquidity squeeze, as CBN has yet to sell FX to Bureau de Change (BDC) operators in the last week.
The Centre for the Promotion of Private Enterprise (CPPE) has asked the CBN to adopt a quarterly exchange rate for Customs as frequent adjustments discourage trade and hurt imports.
The centre recommended an FX rate of N1,000 per dollar for import duties.
In an interview with TimesNow.com.ng, financial expert and FX trader Nnadozie John said the fluctuation in Customs FX rates hurts trade and drives away investors.
He said investors would prefer a stable atmosphere to a volatile one, asking the CBN to try out a quarterly FX rate for Customs duty and see what happens.
