Customs exchange rate falls as naira strengthens

The exchange rate for import duties collection by the Nigeria Customs Service (NCS) has dropped from N1,584/$ on July 22 to N1,541/$, marking a decrease of N43.

This decline follows the recent appreciation of the naira in the official market.

According to data from FMDQ, the naira closed at N1,548 to the USD on Tuesday, after closing at N1,564/$ the previous day, indicating an appreciation of N16 in just one day.

On Monday, the naira gained around N100 against the dollar, driven by the Central Bank of Nigeriaโ€™s (CBN) intervention, which involved selling $106 million to licensed Bureau De Change (BDC) operators last week.

This marked the most significant gain since March this year, when the naira appreciated from N1,596 to N1,500 in a single day.

The CBN governor, Yemi Cardoso, explained that its intervention in the forex market was prompted by a rise in demand from businesses and the anticipated seasonal increase in demand during the summer.

The CBN had earlier announced it would sell $20,000 each to eligible BDCs at the rate of N1,450, significantly below the then-official market rate.ย 

This move mirrors a similar intervention by the apex bank in March, which saw the naira become the worldโ€™s best-performing currency.

Despite accusations that the CBN was depleting the foreign reserves to defend the naira, the bankโ€™s Governor denied these claims.

Nigeriaโ€™s foreign reserves have seen a substantial increase, boosted by a rise in diaspora remittances, soaring to $37.05 billion on July 18, 2024.