The Central Bank of Nigeria (CBN) says it has released $500 million to various sectors to address a backlog of verified foreign exchange (FX) transactions.
The development comes just a week after the bank “paid $2.0 billion” to settle outstanding commitments in the manufacturing, aviation, and petroleum sectors.
Hakama Sidi-Ali, acting director of the CBN‘s corporate communications department, spoke about the disbursement in Abuja on Monday.
She stated that the CBN’s management is committed to resolving all legitimate FX backlogs as quickly as possible.
Reiterating the assurances of CBN governor Olayemi Cardoso, Ali stated that the central bank had begun implementing a comprehensive strategy to improve liquidity in Nigeria’s FX markets in 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.
Sidi-Ali stated that the FX reforms were intended to streamline and harmonise multiple exchange rates, increase transparency, and reduce the possibility of arbitrage opportunities.
Ali was also optimistic that a stable exchange rate would increase investor confidence and attract foreign investment.
As a result, the CBN spokesperson urged all participants in the foreign exchange market to follow the rules.
Ali stated that market transparency would allow for fair exchange rate determination and, as a result, ensure stability for businesses and individuals alike.
In November 2023, the apex bank began clearing the banks’ FX forward’s backlog.
Meanwhile, on January 7, 2024, the bank transferred $61.64 million to foreign airlines via various deposit money banks (DMBs).