Price increments are imminent as the Central Bank of Nigeria, CBN, raised the Nigeria Customs Service exchange rate for importation at N1,356.883 per US dollar from N951.842.
The CBN usually determines the exchange rate for Duty
collection.
It was gathered on Friday morning that maritime
stakeholders woke up to the rude shock of the increase in the exchange rate,
which hitherto was set at N951.842 per dollar as of December 2023.
A frontline Customs Broker, Barr Michael Ovien, confirmed
that the CBN has already effected the increased exchange rate on the Trader
Portal for Single Window Trade as of Friday morning.
With the latest increment, importation costs are billed to
increase, while the price of goods and services in the market would increase
astronomically.
According to the National Bureau of Statistics, Nigeria’s
total trade in the third quarter of 2023 stood at N18.80 trillion.
Exports were valued at N10.35 trillion, while total imports
stood at N8.46 trillion. With the latest development, the implication is that
the cost of imported goods will rise as the exchange rate hits N1,356.883 per
US dollar.
Recall that the CBN has issued a new circular that removes
the previous cap on exchange rates quoted by International Money Transfer
Operators, IMTOs.
The circular signed by Hassan Mahmud, Director of Trade and
Exchange Department, was titled ‘Removal of Allowable Limit of Exchange Rate
Quoted by the International Money Transfer Operators’.
Amid the free fall of Naira in the past 48 hours, CBN issued
sweeping policy interventions to curb the continued fluctuations in the
country’s FX market.
Recall that CBN also issued a guideline to curb foreign
currency hoarding and speculation on Wednesday.
The development had impacted the Naira positively as it
rebounded against the US dollar on Wednesday.
Meanwhile, the forex has remained high, quoting at N1461.90
per dollar at Thursday’s close of the FMDQ market.
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