Nigeria Customs Slashes Exchange Rate: Economic Impact Unveiled!

In a move that sent ripples through Nigeria’s economic landscape, the Nigeria Customs Service (NCS) has dropped the exchange rate for clearance of goods and import duties assessment. Findwhosabi News reveals that the current exchange rate stands at N1,238.17 to the USD, marking a notable decline of N6.14 over just the past two days.

This unprecedented shift bears significant weight as it positions the Customs exchange rate lower than the official market rate of NGN to USD, which closed at N1,248.5/$ on the official NAFEM window just yesterday.

The remarkable downward trajectory in the Customs exchange rate in recent weeks is attributed to the remarkable strengthening of the naira and the reverberating impact of the Central Bank of Nigeria’s (CBN) reforms since the year’s inception, exerting positive pressure on the naira’s value in the forex market.

In a bold move to bolster the naira’s value even further, the CBN has implemented a series of strategic measures. Notably, the apex bank has intensified efforts to sell forex to Bureau De Change (BDC) operators at N1,101/$, mandating them to adhere to a 1.5% spread. This tactical maneuver aims to compel BDCs to sell forex at N1.117/$, significantly undercutting the official market rate on the NAFEM window.

Moreover, the CBN has issued directives to banks, urging them to steer clear of utilizing foreign currency-denominated collaterals for naira loans, except for specific exceptions such as Federal government Euro bonds or guarantees from foreign banks like Letters of Credit. Banks have been granted a 90-day grace period to unwind all existing loan collaterals denominated in USD, excluding the aforementioned exceptions.

As Nigeria’s economic landscape continues to evolve in response to these seismic shifts, stakeholders brace themselves for the unfolding implications. Stay tuned as Findwhosabi News remains steadfast in its commitment to delivering comprehensive coverage of Nigeria’s economic pulse, providing insights into the ramifications of these developments on businesses and consumers alike.