The Central Bank of Nigeria (CBN) says it has issued $500 million to various sectors as part of its efforts to reduce the backlog of confirmed foreign currency transactions. Mrs Hakama Sidi-Ali, the CBN’s Acting Director of the Corporate Communications Department, made the announcement on Monday in Abuja.
According to Sidi-Ali, this comes only a week after the apex bank paid almost $2.0 billion to fulfill outstanding commitments in the industrial, aviation, and petroleum sectors. She stated that the CBN’s management is dedicated to resolving all valid foreign exchange backlogs in a timely manner.
She stated that the CBN has began executing a comprehensive plan to increase liquidity in Nigeria’s foreign currency markets for 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 said. Selloffs Provoke Spike in Nigerian Treasury Bills Yield
Sidi-Ali said that the forex market reforms were designed to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities. She expressed confidence that a stable exchange rate would boost investor confidence and attract foreign investment.
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. The CBN, over the past few months, has released various sums in its effort to clear the backlog of foreign exchange liabilities.
Earlier in January, the apex bank settled about $2 billion of the backlog across sectors such as manufacturing, aviation, and petroleum, CBN spokesperson Hakama Sidi Ali said.
