As the naira appreciates, the Central Bank of Nigeria (CBN) has slashed the dollar to clear imported goods in Nigerian ports.
The apex bank crashed the rate to N1,477.75 per dollar, down from N1,500 last week.
The CBN reportedly crashed the rates three times last week following the naira’s bullish run in the forex markets. The development means importers will spend N23 less clearing goods in the ports than those who opened Form M for cargo clearance on Friday, January 31, 2025.
This development comes after the naira appreciated to an eight-month high of N1,474.78 per dollar in the official foreign exchange market on Friday, January 31, 2025.
This comes as dollar demands dropped following implementing the FX Code by the Central Bank of Nigeria (CBN).
Data from the FMDQ Exchange shows that dealers quoted the dollar at a high of N1,495.01 and a low of N1,447.50 per dollar.
The last time the Nigerian currency traded in that range was on June 3, 2024, when it rose to N1,485.99 per dollar.
The local currency has now hit an eight-month high due to a series of policies implemented by the CBN and other factors, such as increasing fuel refining capacity. These policies have cut imports and importers’ dependence on FX.
A report by BusinessDay says that demand for FX by several sectors dropped to $5.7 billion in the third quarter of 2024 from $6.4 billion in the previous quarter of last year.
Nigeria’s foreign exchange inflows have surged as CBN increased remittances via International Money Transfer Operators (IMTOs).
According to reports, foreign exchange inflows hit a 136% high in 2024, relative to 2023.
The Nigerian government also raised over $900 million from dollar bond sales in 2024, fuelling the rise in the country’s FX reserves.
