CBN Releases $500m to Address Forex Backlogs, Emphasizes Market Reforms

The Central Bank of Nigeria (CBN) has taken a significant step to alleviate the pressure in the foreign exchange market by releasing $500 million to various sectors. This move, as stated by Mrs. Hakama Sidi-Ali, the Acting Director of the Corporate Communications Department at CBN, is part of the bank’s commitment to address verified foreign exchange transaction backlogs.

This recent allocation comes on the heels of a substantial disbursement of approximately $2 billion by the apex bank a week earlier, aimed at settling outstanding commitments across different sectors. According to Sidi-Ali, the CBN is determined to clear all legitimate foreign exchange backlogs in a short timeframe.

In a statement made in Abuja, Sidi-Ali outlined the CBN’s comprehensive strategy to enhance liquidity in the Nigerian foreign exchange markets. This strategy encompasses short, medium, and long-term measures, focusing on addressing fundamental issues affecting the effective operation of the Nigerian FX markets.

The CBN’s ongoing forex market reforms aim to streamline and unify multiple exchange rates, foster transparency, and minimize arbitrage opportunities. Sidi-Ali expressed confidence that these measures would stabilize the exchange rate, thereby boosting investor confidence and attracting more foreign investments.

Emphasizing the importance of fair play in the market, Sidi-Ali urged all market participants to adhere to the rules, highlighting that transparency is key to the fair determination of exchange rates.