CBN releases $500m to clear forex liabilities

The Central Bank of Nigeria, CBN, on Monday says it has released 500 million dollars to various sectors in its determination to address the backlog of verified foreign exchange transactions.

The CBN’s Acting Director, Corporate Communications Department, Mrs Hakama Sidi-Ali, disclosed this in a statement in Abuja.

Sidi-Ali stated that this development comes barely a week after the apex bank paid approximately 2.0 billion dollars to settle outstanding commitments across manufacturing, aviation and petroleum sectors.

She noted that the management of the CBN was committed to settling all legitimate foreign exchange backlogs within a short time frame.

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Sidi-Ali added that the CBN had begun implementing a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium and long terms.

“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 said.

Mrs Hakama Sidi-Ali,

Sidi-Ali further disclosed that the forex market reforms were designed to streamline and unify multiple exchange rates, foster transparency and reduce arbitrage opportunities.

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

Sidi-Ali also urged all participants in the market to play by the rules, adding that transparency in the market would enable the fair determination of exchange rates.

Credible news reports that the CBN, over the past few months, has released various sums in its effort to clear the backlog of foreign exchange liabilities.



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