CBN releases another $500m to clear verified FX backlogs

The Central Bank of Nigeria (CBN) has reiterated its commitment towards settling all legitimate foreign exchange backlogs within a short time frame.

To this effect, the apex bank disclosed that a fresh $500 million has been released to various sectors to further address the backlog of verified foreign exchange transactions.

This development is coming barely a week after the apex bank released approximately $2 billion to settle outstanding commitments across manufacturing, aviation, and petroleum sectors.

The Acting Director of the Corporate Communications Department at the CBN, Mrs. Hakama Sidi Ali, made this known in Abuja on Monday, January 29, 2024.

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She reiterated the assurances of the apex bank’s Governor, Mr. Olayemi Cardoso, that the CBN had begun implementing a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium, and long term.

“As the Governor said, the CBN’s focus is on addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years,” she added.

While noting that the forex market reforms were designed to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities, Sidi Ali expressed confidence that a stable exchange rate would boost investor confidence and attract foreign investment.

She, therefore, urged all participants in the market to play by the rules, stressing that transparency in the market would enable the fair determination of exchange rates and, by extension, guarantee stability for businesses and individuals alike.

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