CBN Hikes Exchange Rate for Cargo Clearance to N1,605/$ Amid Volatility

The Central Bank of Nigeria (CBN) has announced another increase in the exchange rate for cargo clearance, from N1,444/$ to N1,605/$, effective from Wednesday, February 21, 2024. This is the latest in a series of adjustments made by the CBN on behalf of the Federal Government, in response to the volatility in the foreign exchange market.

The CBN, which regulates the foreign exchange market in Nigeria, has been trying to stabilize the Naira against the Dollar, amid rising demand for the greenback and dwindling foreign reserves. The exchange rate for cargo clearance, which determines the cost of importing goods into the country, is one of the tools used by the CBN to manage the supply and demand of foreign currency.

However, the frequent changes in the exchange rate have created uncertainty and confusion for the importers, who have to deal with the fluctuations in the cost of clearing their goods. The exchange rate for cargo clearance has more than doubled since December 2022, when it was N952/$. It rose to N1,356/$ in January 2024, then to N1,413/$ in early February, before dropping to N1,472/$ and then rising again to N1,605/$.

According to The PUNCH, the new rate of N1,605/$ was reflected on the portal of the Nigeria Customs Service (NCS) on Wednesday morning, confirming the CBN’s directive. The NCS is the agency responsible for collecting duties and taxes on imported goods, based on the exchange rate set by the CBN.

The CBN has not given any official explanation for the latest increase in the exchange rate for cargo clearance, nor has it indicated if it will be the last one. The importers are hoping that the CBN will find a lasting solution to the foreign exchange crisis, and restore stability and predictability to the exchange rate for cargo clearance.