According to research, the exchange rate has remained steady at an average of N1600/$1 in both the official and parallel markets
The exchange rate for cargo clearance has dropped from last week’s N1612.28/$ to N1593.41/$, representing a decrease of about N18.87.
The CBN, last week, through the customs service increased the exchange rate for cargo clearance by N18.44 to the prior figure. The drop in exchange rate for cargo clearance mirrors the recent strengthening of the naira on the forex market.
The data from FMDQ shows that the naira closed at N1602.75 on the last trading day of last week, March 15th, 2024.
The volatility that accompanied the second devaluation of the naira earlier in the year has largely subsided in the past few weeks. Recently, the chasm between the official market rate and the parallel market rate have largely come at par.
Reports have earlier stated that exchange rates in both the official and parallel markets are nearly equal, indicating significant success of the implementation of the CBN’s forex market unification policy.
According to research, the exchange rate has remained steady at an average of N1600/$1 in both the official and parallel markets.
While not identical, fluctuations have seen rates ranging between N1590 and N1630 in both markets, resulting in an exchange rate disparity of less than 2%.
This is notably lower than the commonly accepted 5% premium between official and parallel market rates. The apex Bank had in February discontinued the ±2.5% cap spread on the interbank FX transactions.
Also, the Central Bank of Nigeria, last week, reiterated its earlier warnings to banks on the use of FX revaluation gains for paying dividends and running operational cost.
It stated that gains from FX Revaluation should be set aside as buffer in the event there is not enough liquidity in the market. In 2023, financial institutions including banks realised significant returns from the FX revaluation.
However, companies in manufacturing, consumer goods, and telecoms faced significant FX losses.
