The Central Bank of Nigeria (CBN), in its ongoing efforts to address the backlog of verified foreign exchange operations, has injected an additional $500 million into the market. This move follows a previous action where the bank sent approximately $2 billion to settle unfulfilled obligations in the petroleum, aviation, and manufacturing sectors just a week ago.
Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at the CBN, disclosed this development in Abuja on Monday. Emphasizing the commitment to resolving legitimate forex backlogs promptly, Sidi Ali outlined that the CBN is implementing a comprehensive plan to enhance short-, medium-, and long-term liquidity in the Nigerian foreign exchange markets.
The CBN spokeswoman highlighted that the primary objective of this policy is to address the longstanding issues hindering the efficient operation of the Nigerian FX markets. She quoted the CBN management’s dedication to settling all legitimate foreign exchange backlogs within a short time frame, echoing the governor’s focus on resolving fundamental issues impacting the FX markets.
Sidi Ali urged participants in the forex market to adhere to rules, underscoring that transparency would facilitate fair exchange rate determination, ensuring stability for both businesses and individuals.
The CBN has been actively taking steps to tackle currency backlog in recent months, and the current injection of funds is just one of its interventions. The bank has released various amounts over the past few months to settle outstanding foreign exchange liabilities, aiming to contribute to the stabilization of the foreign exchange market and stimulate Nigeria’s economy.
Sidi Ali expressed optimism that the ongoing reforms in the forex market would eliminate arbitrage opportunities, promote transparency, and simplify and harmonize various currency rates. She anticipated that a stable exchange rate resulting from these measures would attract increased foreign investment and bolster investor confidence.
