CBN Releases US$500 Million to Address Forex Backlog, Aims to Boost Market Liquidity
The Central Bank of Nigeria (CBN) has taken decisive steps to tackle the backlog of verified foreign exchange (forex) transactions, injecting US$500 million into various sectors. This move follows closely on the heels of the recent disbursement of approximately US$2.0 billion to settle outstanding commitments in the manufacturing, aviation, and petroleum industries.
Speaking on Monday in Abuja, Mrs. Hakama Sidi Ali, the Acting Director of the CBN’s Corporate Communications Department, emphasized the bank’s commitment to resolving all legitimate forex backlogs promptly. She reiterated the assurances of Governor Mr. Olayemi Cardoso, underlining the CBN’s implementation of a comprehensive strategy to enhance liquidity in Nigeria’s forex markets across short, medium, and long-term periods.
“The CBN’s focus is on addressing fundamental issues that have hindered the effective operation of the Nigerian forex markets over the years,” said Sidi Ali, highlighting the bank’s ongoing forex market reforms. These reforms aim to streamline and unify multiple exchange rates, promote transparency, and reduce arbitrage opportunities.
Sidi Ali expressed confidence that a stable exchange rate would bolster investor confidence and attract foreign investment. She called on all market participants to abide by the rules and stressed the importance of market transparency in determining fair exchange rates, which in turn would ensure stability for businesses and individuals alike.
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