In a strategic move to address the persistent backlog of verified foreign exchange operations, the Central Bank of Nigeria (CBN) has injected an extra $500 million into the market.
This announcement follows closely on the heels of the bank’s recent allocation of $2 billion to settle unmet obligations in the petroleum, aviation, and manufacturing sectors.
Speaking in Abuja on Monday, Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at the CBN, highlighted the bank’s unwavering commitment to promptly resolve all legitimate forex backlogs. Ali detailed the implementation of a comprehensive plan aimed at enhancing short-, medium-, and long-term liquidity in the Nigerian foreign exchange markets.
“The Management of the CBN is committed to settling all legitimate foreign exchange backlogs within a short time frame,” emphasized Sidi Ali. She reiterated the central bank’s focus on addressing long-standing issues hindering the efficient operation of the Nigerian FX markets.
Encouraging adherence to market rules, Ali stressed the importance of transparency for fair exchange rate determination, providing stability for businesses and individuals alike. “We urge all participants in the market to play by the rules. Transparency in the market will enable the fair determination of exchange rates and, by extension, guarantee stability for businesses and individuals alike,” she emphasized.
The CBN has been actively tackling the currency backlog in recent months, with this latest injection being part of a series of measures. Various amounts have been released to settle outstanding foreign exchange liabilities, with the ultimate goal of stabilizing the foreign exchange market and stimulating Nigeria’s economy.
Sidi Ali detailed ongoing reforms intended to eliminate arbitrage opportunities, enhance transparency, and simplify and harmonize currency rates. She expressed optimism that these changes would attract increased foreign investment and boost investor confidence through a stable exchange rate. As the CBN continues its interventions, the hope is that the forex market will experience sustained stability, fostering economic growth and resilience.
