Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso has announced the completion of forensic verification aimed at clearing all outstanding foreign exchange backlogs, with payments set to commence shortly.
Gatekeepers News reports that during the launch of the Foreign Exchange Code, he expressed concerns over the significant delay, noting that it took over twelve months to resolve a $7 billion backlog in 2024.
In March of the previous year, the Central Bank of Nigeria (CBN) announced the clearance of this backlog, effectively addressing a longstanding issue. Cardoso emphasized that the era of multiple exchange rates, which disproportionately benefited a select few, has come to an end. He warned that deposit money banks that violate the principles outlined in the Foreign Exchange Code will face penalties.
Furthermore, Cardoso criticized what he referred to as an unprecedented era of questionable financing methods that have adversely affected the economy, contributing to high inflation and the depreciation of the national currency. The Foreign Exchange Code serves as a guideline for ethical conduct within the Nigerian foreign exchange market.
Additionally, he highlighted the introduction of the Electronic Foreign Exchange Matching System in December 2024, which has significantly enhanced market transparency and efficiency. As a result, the naira strengthened from an exchange rate of N1,663 to one dollar in December 2024 to N1,536 as of January 27, 2025.
Cardoso reaffirmed the bank’s commitment to maintaining exchange rate stability, noting that the nation’s external reserves have increased to $40.7 billion as of December 2024.
