ICYMI: CBN disburses $500m to clear Forex backlog

The Central Bank of Nigeria (CBN) has disbursed $500 million across various sectors to expedite the resolution of verified foreign exchange transactions that have been pending.

This development follows closely on the heels of the apex bank’s recent payment of approximately $2.0 billion to address outstanding obligations within the manufacturing, aviation, and petroleum industries.

Mrs. Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at the CBN, announced this in Abuja on Monday. She emphasized the CBN’s commitment to swiftly settling all legitimate foreign exchange backlogs.

The proactive approach aligns with the directives of Governor Olayemi Cardoso, who has underscored the importance of resolving longstanding issues in the Nigerian FX markets.

Sidi Ali highlighted the commencement of a comprehensive strategy by the CBN to enhance liquidity in the foreign exchange markets, addressing both immediate concerns and long-term objectives.

“The CBN is dedicated to tackling fundamental challenges that have impeded the effective functioning of the Nigerian FX markets over the years,” she reiterated.

The ongoing reforms in the forex market aim to streamline and unify multiple exchange rates, foster transparency, and minimize arbitrage opportunities.

Sidi Ali expressed confidence that achieving a stable exchange rate would instill confidence among investors, encouraging foreign investment.

She urged market participants to adhere to established guidelines, emphasizing that transparency would facilitate fair exchange rate determinations. This, in turn, would contribute to stability for businesses and individuals alike.

The CBN has been consistently releasing funds in recent months as part of its concerted efforts to eliminate the backlog of foreign exchange liabilities.