• The Central Bank of Nigeria (CBN) has adjusted the exchange rates for cargo clearance in Nigeria’s ports
  • The new rates affect Customs duty rates for importers bringing goods into Nigeria via air, land, and sea
  • The development comes after the naira appreciated for two consecutive days, rising from N1,617 to N1,601 per dollar

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

The Central Bank of Nigeria (CBN) has reduced the foreign exchange rates for cargo clearance after the naira appreciated against the US dollar for two days.

Data from the Customs trade portal shows that the apex bank adjusted the rate to N1,592.636 as of Wednesday, August 7, 2024, from the N1,618.73 reported on Monday, August 5, 2024.

CBN makes changes to Customs duty rates
Importers to pay less to clear cargo from Nigeria’s ports as CBN adjusts Customs rates
Credit: Nigeria Customs Service
Source: Facebook

Dollar crashes in the official market

Read also

Naira to dollar appreciates as CBN commences new deal with currency traders

The development means Nigerian importers opening Form M will pay less than they spent the previous day.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Analysts also believe the new adjustment will affect the prices of goods in the country as the importers reflect the cost of cargo on prices.

The development comes as the Nigerian currency, the naira, appreciated against the US dollar for two consecutive days, beginning Monday, August 5, and Tuesday, August 6, 2024.

On Monday, August 5, 2024, the naira traded at N1,608 per dollar, up from the N1,617 it traded on Friday, August 2, 2024. On Tuesday, it appreciated further to N1,601 per dollar.

CBN commences Retail Dutch Auction System

Analysts have attributed persistent volatility in the country’s exchange rate market to liquidity issues.

Read also

Boost for naira as CBN takes another decision to crash dollar exchange rate

The Central Bank of Nigeria (CBN) hopes to reverse the naira’s poor performance in the foreign exchange market by beginning dollar sales via retail auction today, Wednesday, August 7, 2024. 

The apex bank hopes that selling dollars at a retail auction today will halt the trend of naira depreciation. 

BusinessDay reports that the CBN has already received a list of all outstanding FX demand by end-users from authorized dealer banks after telling them in a circular that it was diverging from the usual wholesale auctions to banks. 

However, a previous report by Legit.ng shows that FX Spot and Derivatives markets’ turnover for the week ended August 2, 2024, stood at $1.087 million, representing a decline of 16.5% or $215.24 million from $1.302.57 million recorded on July 26, 2024.

Weekly analysis on the FMDQ Securities Exchange shows a decrease in total turnover, which was driven by the 16.8% decline in FX spot turnover. The total value was $1.087.72 million compared to the $1.302.57 million recorded in the week ended July 26, 2024, erasing the $3.61 million increase in FX derivatives turnover.

Read also

CBN crashes dollar for importers after naira appreciates against USD in official, parallel markets

Naira depreciates in NAFEX in one week

FMDQ disclosed that the weekly increase in FX derivatives turnover was mainly driven by the $3.61 million increase in FX forwards turnover. At the same time, there was a consistent lack of activity in the exchange-traded FX Futures and Cleared Naira-Settke Non-Deliverable Forwards.

According to reports, within the period, the Nigerian Autonomous Foreign Exchange Fixing (NAFEX) stood at N1,610.56 per dollar, compared to N1,584.4 million recorded in the week ended July 26, 2024.

Analysts believe that foreign exchange liquidity is expected to remain weak due to the Central Bank of Nigeria (CBN) ‘s weak interventions.

Codros Capital disclosed that heightened global interest rates and geopolitical uncertainties may weaken foreign inflows.

FX inflow declines in one week

FMDQ data shows that total inflows into the Nigerian foreign exchange market declined to a five-month low in July, decreasing by 4.4% monthly to $1.9 billion from $2.01 billion recorded in June.

Read also

Banks, traders crash dollar rate in official, black markets as naira records best gains in 2 weeks

The drop was due to a contraction in FX inflows. Collections from foreign sources dipped by 51.4% monthly to $243.3 million from $500.2 million due to weaker collections from portfolio investments of about 58.8% and others declining by negative 32.1% despite the rebound in foreign direct investment of 1.705.9.

Customs set to begin import waiver, set rules

Legit.ng earlier reported that the Ministry of Finance is developing a framework to guide the expected huge food imports that will soon begin.

The move is one strategy of the Nigerian government to ease the high cost of living across the country.

The framework will be ready next week, the Nigeria Customs Service Comptroller General, Adewale Adeniyi, said on Tuesday, August 6, 2024.

Source: Legit.ng




Source link

0 Shares:
Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like