CBN Releases Further $500m To Clear Verified FX Backlogs In Various Sectors

As part of its determination to address the backlog of verified foreign exchange transactions in the country, the Central Bank of Nigeria (CBN) on Monday said it has released US$500m in various sectors.

This, the apex bank said, comes barely a week after it paid approximately US$2bn to settle outstanding commitments across manufacturing, aviation, and petroleum sectors.

The statement quoted the CBN’s Acting Director of the Corporate Communications, Mrs. Hakama Sidi Ali, as restatemnt the commitment of the CBN to settling all legitimate foreign exchange backlogs within a short time frame.

The apex bank, she continued, had begun implementing a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium, and long term.

“As the governor said, the CBN’s focus is on addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years,” she added.

While noting that the forex market reforms were designed to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities, Sidi Ali 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 and, by extension, guarantee stability for businesses and individuals alike.

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