Inflation To Soar As CBN Adjusts Exchange Rate To N1,356.883/$1

Prices of imported goods and services will increase, thereby, fuelling inflation as the Central Bank of Nigeria (CBN), adjusted the exchange rate from N951.941/$1 to N1,356.883/$1.

LEADERSHIP reports that financial experts have said until the exchange rate stabilises, inflation will not stabilise and will continue to soar in Nigeria.

Our Correspondent, however, gathered that the adjustment was made midnight by the CBN, meaning the cost of clearing cargoes in the nation’s seaports will automatically go up

It could be recalled that the CBN on June 24, 2023 adjusted the exchange rate from N422.30/$1 to N589/$1 and on July 6, 2023 it was adjusted to N770.88/$1, on November 14, 2023, it was adjusted to N783.174/$1, December 7, 2023, it was adjusted to N951.941/$1 and currently, it is N1,356.883/$1.

Clearing agents, however, stated that with N 404.942 increment, cargoes will be abandoned at the nation’s seaports while prices of goods will go up.

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Confirming the development, a clearing agent, Chukwu Ikemefuna, said the CBN effected the increase on Trader Portal for Single Window by midnight.

Ikemefuna rued the increment, saying importers will now pay more for cargo clearance at the various seaports.

He stated that a lot of cargoes would be abandoned at the seaports because the differential was too wide for importers to bear.

“The federal government has increased the Dollar exchange rate, from N422.30 to N589.45 then to N770.88, in November, it was moved to N783.174, December 2023, we are at N951.941 to a dollar now, we N1,356.883/$1, this is too much,” Ikemefuna, a frontline clearing agent stated.

He continued, “What it implies in simple terms is that, if clearing agents have a Debit Note that has not been paid on the system or Pre-Arrival Assessment Results (PAAR) or they have given you the value and you have not captured, it has affected you directly.”

“We just believe that maybe with time, we will see low exchange rate and it will become beneficial to the importers as well because once there is a change in the portal, there is nothing anybody can do about it. But if you have captured or accessed your work, you are good to go and your consignment would be released for you if you don’t have any infraction.”

“Whether you have collected your value, whether you have a PAAR, if you have not done your assessment as of now, you can’t capture it with that old rate. Especially for the Roll On Roll Off (RORO) or those that are doing PAAR door to door. It’s a Federal government policy. We stakeholders can’t do anything for now, but it’s the prerogative of the FG to intervene and stabilise the foreign exchange market,” he stated.