Central Bank of Nigeria (CBN) has disbursed 500 million dollars to various sectors in its determination to address the backlog of verified foreign exchange transactions.
Gatekeepers News reports that Mrs. Hakama Sidi-Ali, CBN’s Acting Director of the Corporate Communications Department, said this in a statement on Monday in Abuja.
According to the News Agency of Nigeria (NAN), Sidi-Ali said this comes barely a week after the apex bank paid approximately 2.0 billion dollars to settle outstanding commitments across manufacturing, aviation, and petroleum sectors.
She said that the management of the CBN was committed to settling all legitimate foreign exchange backlogs within a short time frame.
She said the CBN had begun implementing a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium, and long terms.
“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 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.
In the last three months, the Central Bank of Nigeria (CBN) has successfully cleared almost $2 billion in overdue foreign exchange forwards, aiming to resolve the backlog of dollars in Africa’s largest economy.
Hakama Sidi-Ali, the acting director of corporate communications at the apex bank, disclosed this information in a statement.
Despite these efforts, forex shortages persist, impacting the value of Nigeria’s naira currency. With about $7 billion in matured forex forwards, a source of concern for investors, the CBN has committed to making payments to instill confidence in the foreign exchange market.
