The Central Bank of Nigeria (CBN) has allocated US$500 million to address the lingering backlog of verified foreign exchange (forex) transactions across different sectors.
This move follows closely on the heels of the recent disbursement of approximately US$2.0 billion, which resolved outstanding commitments in manufacturing, aviation, and petroleum sectors within the previous week.
Mrs. Hakama Sidi Ali, Acting Director of the Corporate Communications Department at the CBN, revealed this initiative in Abuja on Monday, January 29th. She underscored the CBN’s unwavering dedication to promptly resolving all legitimate forex backlogs.
Aligning with Governor Olayemi Cardoso’s assurances, Sidi Ali emphasized the implementation of a comprehensive strategy by the CBN to bolster liquidity in Nigeria’s foreign exchange markets across short, medium, and long-term horizons.
“As articulated by the Governor, the CBN’s primary focus remains on addressing underlying challenges that have hindered the efficient operation of Nigeria’s forex markets,” she reiterated.
Sidi Ali elaborated on the forex market reforms designed to streamline and harmonize multiple exchange rates, foster transparency, and mitigate arbitrage opportunities. She expressed confidence that maintaining a stable exchange rate would bolster investor confidence and attract foreign investments.
Urging market participants to adhere strictly to regulations, she emphasized the pivotal role of market transparency in ensuring equitable exchange rate determination and, consequently, fostering stability for businesses and individuals alike.
It is noteworthy that the CBN has consistently disbursed various sums in recent months as part of its ongoing efforts to eliminate the backlog of foreign exchange liabilities.
