CBN Disburses $500m To Clear Forex Liabilities Backlog

In its determination to address the backlog of verified foreign exchange transactions, the Central Bank of Nigeria, CBN has disbursed 500 million dollars to various sectors.

This comes barely a week after the Bank paid approximately two billion dollars to settle outstanding commitments across manufacturing, aviation, and petroleum sectors.

The CBN’s Acting Director Corporate Communications Department, Mrs. Hakama Sidi-Ali, who stated this in Abuja noted that the Management of the CBN was committed to settling all legitimate foreign exchange backlogs within a short time frame.

Reiterating the assurances of the CBN Governor, Mr. Olayemi Cardoso, Mrs. Sidi-Ali said the CBN had begun implementing a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium, and long term.

She explained that the CBN’s focus was on addressing fundamental issues that have hindered the effective operation of the Nigerian forex markets over the years.

While noting that the forex market reforms were designed to streamline and unify multiple exchange rates, foster transparency and reduce arbitrage opportunities, the Acting Director expressed confidence that a stable exchange rate would boost investor confidence and attract foreign investment.

She therefore, urged all participants in the market to play by the rules, stressing that transparency in the market would enable the fair determination of exchange rates by extension, guarantee stability for businesses and individuals alike.

The CBN, over the past few months, has released various sums in its effort to clear the backlog of foreign exchange liabilities.

PR/Umbwanko Baba