Exchange rate for cargo clearance has recently decreased from N1612.28/$ to N1593.41/$ resulting in a drop of approximately N18.87.
Gatekeepers News reports that this drop in exchange rate reflects the strengthening of the naira on the forex market, as the naira closed at N1602.75 on the last trading day of last week.
The volatility that followed the second devaluation of the naira earlier this year has largely subsided in the past few weeks, and the official market rate and the parallel market rate are currently almost equal.
This indicates significant success in the implementation of the CBN’s forex market unification policy, with exchange rates maintaining an average of N1600/$1 in both the official and parallel markets.
While fluctuations have seen rates ranging between N1590 and N1630 in both markets, the exchange rate disparity has been less than 2%, which is notably lower than the commonly accepted 5% premium between official and parallel market rates.
The apex bank has discontinued the ±2.5% cap spread on the interbank FX transactions.
The Central Bank of Nigeria has warned banks against using FX revaluation gains for paying dividends and running operational costs, stating that gains from FX revaluation should be set aside as a buffer in the event there is not enough liquidity in the market.
In 2023, financial institutions, including banks, realized significant returns from FX revaluation, while companies in manufacturing, consumer goods, and telecoms suffered significant levels of FX losses.
