The Nigeria Customs Service (NCS) has informed the public that it does not determine exchange rate.
Public Relations Officer, Deputy Comptroller Timi Bomodi made the clarification in a statement on Wednesday, September 14, 2022.
The spokesman referred to reports which attributed the increase in exchange rate to the NCS.
What Bomodi said: Bomodi stressed that the Central Bank of Nigeria (CBN) had the sole responsibility to do so.
The PRO said the apex bank fixes official rates for calculating duties and other taxes applicable for import and export.
“The attention of the Nigeria Customs Service has been drawn to reports in some sections of the media attributing the increase in exchange rate in our system to the Nigeria Customs Service.
“Noting that the rate of exchange used to calculate duty payments is not a static phenomenon, we wish to reiterate that the Central Bank of Nigeria is the only organisation vested with the authority to determine official rates as applicable for the purpose of calculating duties and other taxes applicable for import and export.
“Members of the trading public are kindly advised to go about their business dealings with the full assurances of the Service’s commitment to trade facilitation.”
What you should know: Earlier in the week, the official exchange rate Customs uses to calculate import duties and levies increased from $409 to $422.3 on its portal, a move that did not go down well with stakeholders, who expressed concerns that the hike would lead to increase in the cost of clearing vehicles and other goods at the country’s seaports.
Dollar to Naira (USD to NGN) Black Market Exchange Rate Today: Selling Rate is N702, while Buying Rate N699.
Factors Influencing Foreign Exchange Rates: Here are some of the causes of the dwindling dollar to naira exchange rate.
Inflation Rates: It is well known that inflation directly impacts black market exchange rates. If the Nigerian economy can be stabilized and inflation is brought under control, the naira will benefit; however, if the naira continues to fall, it may indicate that food and other necessities are becoming more expensive daily.
Interest Rates: Another tool to keep an eye on is interest rates. If the interest rate at which banks lend money rises, it would harm the economy, causing it to contract and, as a result, the value of the naira to fall.
Government Debt: National debt can impact investor confidence and, as a result, the influx of funds into the economy. If inflows are high, the naira exchange rate will rise in favour of the naira.
Speculators: Speculators frequently impact the naira-to-dollar exchange rate. They stockpile money in anticipation of a gain, causing the naira to plummet even lower.
Conditions of Trade: Favorable trade terms will increase the value of the naira to the dollar, although Nigeria is currently experiencing a trade deficit. Everything comes from China, India, and the majority of Asian countries.