The import duty exchange rate for Nigeria Customs Service (NCS) increased further and now stands at N1,549 per dollar. The sustained increase in Customs FX rates in July, according to analysts, coincides with a stable exchange rate in June that saw less modifications.
Customs duties rate increased 5times in June
The rates of customs duties increased by around five times in the past month. The Central Bank of Nigeria (CBN) did, however, modify the exchange rates for cargo clearance seven times in July.
The hike is a N37 increase over the previous rate of N1,512 published on July 9, 2024, according to the most recent data available on the Customs exchange rate portal. Customs and CBN are collaborating on a single-rate. The CBN has been urged by experts to implement a quarterly exchange rate for customs charges.
According to the NCS, efforts are already underway to reach a single rate in collaboration with the apex bank. This comes after the naira lost value on Tuesday, July 9, 2024, trading at N1,532.58 instead of N1,523 on Monday, July 8, 2024.
Naira crashing against the dollar
On Tuesday, July 9, the Nigerian Autonomous Foreign Exchange Market (NAFEM) concluded with the naira closing at N1,532.28/$1, according to securities data from FMDQ.
As of Tuesday, the official market rate for the naira shows that its value versus the US dollar fell by 0.57%, or N8.43, from N1,523.85/$1 the day before.
Despite an increase in the flow of foreign exchange into the official market, the naira’s poor performance persisted.
The local news brand holds that banks, corporations, and other participants in the official window traded $188.19 million on Tuesday, up $54.73 million or 35.7% from the $133.46 million recorded on Monday.
Forex Reserve Increases
The depreciation coincides with a $110 million gain in Nigeria’s foreign exchange reserve, which reached 34.7 billion on Sunday, July 8, 2024. Nigeria’s foreign exchange reserves have increased by $110 million in a single day, to a record high of $34.7 billion, according to data from the Central Bank of Nigeria (CBN).
Since the start of July, the reserve has increased by almost $316 million. Increased oil prices, better remittances from the diaspora, and the CBN’s plan to stabilise the local naira are some of the causes of the surge. In the official market, the naira surpasses a new low.
The naira crosses a new Threshold
The national news brand had earlier stated that on Wednesday, June 3, 2024, the value of the naira in Nigeria exceeded N1,500 per dollar in both the official and parallel markets.
On Wednesday, June 3, 2024, the naira was valued at approximately N1,512 per dollar on the official market, down from N1,508 the previous day. The spot rate was offered by currency dealers in the official market, with a high of N1,535 and a low of N1,445.
