CBN Disburses $500 Million to Clear Part of Verified FX Backlogs

The Central Bank of Nigeria (CBN) has announced the disbursement of $500 million to different sectors of the economy to follow up on its recent payment of over $2 billion to clear outstanding debts in manufacturing, aviation, and petroleum sectors.

Mrs Hakama Ali, the Acting Director of the Corporate Communications Department at the CBN, announced this. She said that the move by the CBN to disburse $500 million aligns with the CBN's commitment to address the backlog of verified foreign exchange transactions. She said that the management of the CBN is committed to settling these transactions.

Speaking on the promises of the CBN Governor, Olayemi Cardoso, Mrs Hakama Ali stated that the CBN is putting up a comprehensive strategy to boost liquidity in the Nigerian foreign exchange markets in the short, medium, and long term.

She said, "As the Governor said, the CBN focuses on addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years."

She also disclosed that the forex market reforms aim to streamline and unify multiple exchange rates, promote transparency, and reduce arbitrage opportunities.

She expressed her hope in seeing stability in the foreign exchange rate as she said it would help elevate investor confidence and attract foreign investment.

Ali also emphasised the importance of adherence to market regulations, which she said transparency is essential for fair exchange rate determination and stability for businesses and individuals.

This is not the CBN's first move in addressing the rising exchange rates. In recent months, the apex bank has implemented different strategies to cushion the backlog of foreign exchange liabilities.

Get 24/7 global news on NSMNews...