The Central Bank of Nigeria (CBN) has taken another significant step to address the persistent backlog of verified foreign exchange transactions by injecting an additional $500 million into the market.
The move follows the recent injection of approximately $2 billion by the apex bank, aimed at settling outstanding commitments in key sectors like manufacturing, aviation, and petroleum.
On Monday, January 29, the CBN’s acting director of the corporate communications department, Mrs. Hakama Sidi Ali, announced the most recent intervention in Abuja. She reiterated the CBN’s commitment to resolving all legitimate forex backlogs within a short period.
“The management of the CBN is committed to settling all legitimate foreign exchange backlogs within a short time frame,” Ali said.
She also reassured the people of Nigeria that the CBN is putting into action a comprehensive plan to improve liquidity in the country’s foreign exchange markets in the short, medium, and long terms.
She claims the strategy focuses on addressing fundamental issues that have hindered the effective operation of the Nigerian forex markets over the years.
“The CBN’s focus is on addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years,” she emphasized.
Ali explained that the forex market reforms aim to streamline and unify multiple exchange rates, promote transparency, and reduce arbitrage opportunities.
The CBN spokesperson expressed confidence that a stable exchange rate would boost investor confidence and attract foreign investment.
“We urge all participants in the market to play by the rules. Transparency in the market will enable the fair determination of exchange rates and, by extension, guarantee stability for businesses and individuals alike,” Ali emphasized.
The latest intervention is part of a series of measures taken by the CBN in recent months to clear the forex backlog. The continuous efforts of the CBN are expected to contribute to stabilizing the forex market and fostering economic activity in Nigeria.
CBN Governor, Dr. Olayemi Cardoso, had previously indicated during a speech at the Nigerian Economic Summit Group (NESG) forum that the apex bank would expedite the liquidation of foreign exchange backlogs across various sectors.
