Emmanuel OchayiThe exchange rate for Nigeria Customs Services’ cargo clearance has plunged, now standing at N1260.49/$ compared to N1330/$ in recent days.
This drop of approximately N70 per clearance is a testament to the strengthening position of the naira in the foreign exchange (FX) market.
In light of this development, the Customs Service confirms that the Central Bank of Nigeria (CBN) has been consistently adjusting the exchange rate to mirror prevailing market conditions. Speaking on the matter, a customs official stated, “The decrease in exchange rate is positively impacting cargo clearance and import duty payments, facilitating smoother trade operations.”
The CBN’s efforts to stabilize the forex market have yielded tangible results, aligning official rates with those of the parallel market. “Our reforms aim to enhance market stability, discourage speculation, and bolster the naira’s value,” emphasized a CBN spokesperson.
The recent reforms by the CBN have introduced several measures aimed at achieving these objectives. Notably, limitations have been imposed on International Oil Companies (IOCs), mandating a delay in the repatriation of half of their foreign exchange earnings.
This strategy aims to mitigate speculative activities and promote a more sustainable forex market.
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Furthermore, commercial banks are now restricted from utilizing profits from forex sales for operational expenses and dividend payouts. This move is part of the broader effort to ensure that forex transactions contribute to market stability rather than fueling speculative behavior.
As part of its intervention, the CBN has also initiated a fixed pricing scheme for Bureau de Change operators, offering dollars at a rate of N1,251 per dollar. This measure aims to streamline forex transactions and curb price irregularities in the market.
Despite these positive developments, challenges persist, as highlighted by the Nigerian Customs boss. “The fluctuating exchange rates pose obstacles to trade, with 28 different rates recorded for cargo clearance in the first quarter alone,” lamented the customs official.
Nevertheless, with the exchange rate trending downwards and the CBN’s proactive reforms in place, there is optimism for further stability and growth in Nigeria’s forex market, fostering a conducive environment for trade and economic development.
