Dollar to Naira News

Customs exchange rate for import duties rises to the highest in three months – Nairametrics

By Aghogho Udi

The Nigeria Customs Service (NCS) exchange rate for import duties collection has risen to N1508/$- the highest in the past three months dating back to 21st March 2024 when the exchange rate for Customs import duties stood at N1,572/$.

This represents an increase of N38 from the previous figure of N1470/$.

The current increase in the FX rate for customs duties collection reflects the recent weakening of the naira on both the official and parallel window despite relative quietness in June reflecting some level of stability in the FX market.

Calm FX market in June

In June, there was some level of stability in the FX market and even the customs exchange rate. The exchange rate fluctuated between N1,473 and N1,510, closing the month at N1,505.30/$1, indicating a 1.3% depreciation for the month.

This stability in June, despite the topsy-turvy FX market earlier, suggests that the CBN’s reforms and policy measures might be beginning to stabilize the foreign exchange market.

Speaking on the stability seen in June, the Governor of the CBN, Yemi Cardoso said in an interview that Nigerians have seen the worst of exchange rate volatility.

He said, “We are relatively pleased with how far we’ve gotten now. In the past two to three weeks after a period of volatility, we’ve seen a lot of stability in the market. “

“There’s hardly been any movement in the currency. The rates have been merged. We believe this is good and allow companies to plan, and signal to potential investors where the road of travel is in our economy.” 

“I do believe that we have more or less seen the worst in terms of volatility”

Notably, in the first half of 2024, the CBN raised the Monetary Policy Rate (MPR) by a cumulative 750 basis points. This move aimed to address the rising inflation rate and attract foreign portfolio investors.

This provided instant impact in the first quarter of the year as foreign portfolio investment rose to $2.07 billion- the highest by a quarter since Q1 2020.

Furthermore, total capital imports in the quarter rose to $3.37 billion, the highest by a quarter since Q1, 2020.

Impact of the high FX rate for import duties

The continued rise in the exchange rate for import duties continues to burden importers and the business community in general as it increases the cost of imports and further exacerbates the inflation rate in the country.

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms had earlier stated that the FX rate for import duties will be pegged to the rate used in the 2024 budget which is N800/$ but this is yet to materialise.

See Dollar to Naira black market today, Pound to Naira, Euro to Naira, Dollar to Naira CBN rate and Dollar to Naira Bank rate today.

Related Posts

Airtel Africa, 23 Others Lift Stock Market by N262bn – This Day News

By Kayode Tokede The stock market segment of the Nigerian Exchange Limited (NGX) yesterday took a positive stance as investors buy-side actions in Airtel Africa Plc and 23…

Summer vacation, strong U.S. dollar push naira to a 4-month low – Nairametrics

By Olumide Adesina The bullish dollar index and summer vacation have led to a considerable increase in demand for foreign currencies, putting significant pressure on the naira. The naira…

Appeal Court quashes N20 million damages against Guaranty Trust Bank, backs it’s Know-Your-Customer requirements on corporate account – Nairametrics

By Nnaemeka Onyekachi Story Highlights  The Court of Appeal in Abuja has overturned a N20 million damages ruling against Guaranty Trust Bank (GTB) by the Federal Capital Territory High…

Standard Bank Securities: Banks under our coverage could pay N217bn as proposed windfall tax – The Cable News

By Bunmi Aduloju The Standard Bank Group (SBG) Securities says banks under its coverage could pay N217 billion in the proposed windfall tax. In a report on Thursday,…

Central Bank’s Misguided Policies Under Cardoso Have Worsened Naira, Strangled Nigerian Economy – Civic Organisation – Sahara Reporters

By Sahara Reporters The Nigeria Must Win Network (NMWN), a civil society, has stated that interventions under the Governor of Central Bank of Nigeria (CBN), Olayemi Cardoso’s leadership…

Alleged N17.8bn Debt: Court Orders CBN, EFCC to Investigate Afex Accounts in 28 Banks – This Day News

By Wale Igbintade A Federal High Court in Lagos has ordered the Central Bank of Nigeria (CBN) and the Economic and Financial Crime Commission (EFCC) to carry out…