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CBN Intervenes, Injects $500M To Clear Backlog Of Forex | READ MORE

Faith Ukanwa

Jan 30, 2024

CBN Intervenes, Injects $500M To Clear Backlog Of Forex | READ MORE

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The Central Bank of Nigeria (CBN) says it has released $500m to various sectors in its determination to address the backlog of verified foreign exchange transactions.

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Its Acting Director, Corporate Communications Department, Mrs Hakama Sidi-Ali, disclosed this in a statement on Monday in Abuja.

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According to Sidi-Ali, this comes barely a week after the apex bank paid approximately $2bn to settle outstanding commitments across various sectors.

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She said that the management of the CBN was committed to settling all legitimate foreign exchange backlogs within a short time frame.

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She said the CBN had begun implementing a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium, and long terms.

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"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,ÔÇØ she said.

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Meanwhile, Sidi-Ali said that the forex market reforms were designed to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities.

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She expressed confidence that a stable exchange rate would boost investor confidence and attract foreign investment.

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Speaking further, she urged all participants in the market to play by the rules, adding that transparency in the market would enable the fair determination of exchange rates.

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The CBN, over the past few months, has released various sums in its effort to clear the backlog of foreign exchange liabilities.

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(NAN)

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— Faith Ukanwa

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