In a continued effort to address the backlog of verified foreign exchange transactions, the Central Bank of Nigeria (CBN) has announced the release of an additional $500 million to various sectors. The disclosure was made by Mrs. Hakama Sidi-Ali, the Acting Director of the Corporate Communications Department, in a statement issued on Monday in Abuja.
This recent injection of funds comes just a week after the CBN paid approximately $2 billion to settle outstanding commitments across various sectors. Mrs. Sidi-Ali emphasized the commitment of the CBN’s management to promptly settle all legitimate foreign exchange backlogs.
The CBN has initiated a comprehensive strategy to enhance liquidity in the Nigerian foreign exchange markets, covering short, medium, and long terms. The central bank’s focus, as stated by the Governor, is on addressing fundamental issues that have impeded the effective operation of the Nigerian FX markets over the years.
The ongoing forex market reforms aim to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities. Mrs. Sidi-Ali expressed confidence that maintaining a stable exchange rate would enhance investor confidence and attract foreign investment to the Nigerian market.
In her statement, she urged all market participants to adhere to the rules, emphasizing that transparency in the market would facilitate the fair determination of exchange rates. Over the past few months, the CBN has consistently released various sums as part of its efforts to clear the backlog of foreign exchange liabilities.
