Many people believe that as the Naira appreciates against the dollar, the prices of goods will automatically decrease. However, most goods are controlled by the exchange rate from Customs clearing. Yesterday, the Naira appreciated to ₦1,345.370 per dollar in the parallel market from ₦1,430 per dollar on Monday.
It’s important to note that the difference between the parallel market rate and the customs exchange rate can influence the pricing of imported cars. A higher parallel market rate means that importers may have to pay more Naira to acquire the same amount of US Dollars, leading to higher import costs.
In addition, the naira also appreciated to ₦1,345.370 per dollar in the Nigerian Foreign Exchange Market (NAFEM). Data from FMDQ showed that the indicative exchange rate for NAFEM fell to ₦1,345.370 per dollar from N1,408.04 per dollar on Monday, indicating N62.67 appreciation for the naira.
Importers typically factor in exchange rate fluctuations, import duties, shipping costs, and other expenses when pricing imported cars. If the Naira continues to trade at a higher rate in the parallel market compared to the customs exchange rate, it may limit the potential for price drops in imported cars, as importers need to cover their increased costs.
