The Central Bank of Nigeria (CBN) has taken significant steps in its commitment to resolving the backlog of verified foreign exchange transactions by releasing $500 million to various sectors. This move comes on the heels of the recent disbursement of approximately $2 billion by the apex bank to settle outstanding commitments across different sectors.
Acting Director of the Corporate Communications Department at the CBN, Mrs. Hakama Sidi-Ali, made this announcement in a statement on Monday in Abuja. She emphasized the management’s dedication to addressing legitimate foreign exchange backlogs within a short timeframe.
Sidi-Ali highlighted that the CBN has initiated a comprehensive strategy aimed at enhancing liquidity in the Nigerian foreign exchange markets in the short, medium, and long terms. She reiterated the central bank’s focus on tackling fundamental issues that have historically impacted the effective operation of the Nigerian FX markets.
“The CBN’s focus is on addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years,” she stated.
The Acting Director also mentioned that the ongoing forex market reforms are designed to streamline and unify multiple exchange rates, promote transparency, and minimize arbitrage opportunities. Sidi-Ali expressed confidence that a stable exchange rate would positively influence investor confidence and attract foreign investment.
In addition, she urged all participants in the market to adhere to the rules, emphasizing that transparency would contribute to a fair determination of exchange rates. Over the past few months, the CBN has consistently released various sums as part of its efforts to clear the backlog of foreign exchange liabilities.
