CBN Releases $500m To Address FX Liabilities Backlog

The Central Bank of Nigeria (CBN) has disbursed $500 million to various sectors, following up on its recent payment of approximately $2.0 billion to clear outstanding commitments in manufacturing, aviation, and petroleum sectors.

Acting Director of the Corporate Communications Department at the CBN, Mrs. Hakama Ali, said this move aligns with the CBN’s commitment to address the backlog of verified foreign exchange transactions. She assured that the management of the CBN is dedicated to settling these transactions swiftly.

Reiterating the promises of CBN Governor Olayemi Cardoso, Ali mentioned that the CBN is implementing a comprehensive strategy to enhance 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.

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

She expressed confidence that a stable exchange rate would elevate investor confidence and attract foreign investment.

Ali called for adherence to market regulations, emphasizing that transparency is crucial for fair exchange rate determination and stability for businesses and individuals.

The CBN has, in recent months, released various sums in efforts to eliminate the backlog of foreign exchange liabilities.