June 17, 2024

Why Naira appreciation yet to fully impact cargo imports – CPPE

The Centre for the Promotion of Private Enterprise has explained that the impact of Naira appreciation may not be immediate on cargo imports because of the import cycle.

Muda Yusuf, the Director of CPPE, disclosed this in a recent statement.

He noted that the fluctuating exchange rates for imports negatively impact the sector.

Yusuf suggested that the Central Bank of Nigeria fix a permanent customs exchange rate for cargo clearance between N900 and N1,000 per dollar for a period of three to 12 months.

“The drop in exchange rate is a very good development for imports and the maritime sector. However, the impact may not be immediate because if you look at the import cycle, it can sometimes be up to 60 to 90 days.

“So, we pray for the sustainability of this current trend, which is sustained. Then, in a few weeks or months, you begin to see the impact on the activities at the port. So, it is a very good development”, he stated.

The customs exchange rate has fluctuated for months due to FX market fundamentals.

DAILY POST reported that Naira returned to appreciation by gaining N75 against the Dollar on Wednesday.

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