Emmanuel OchayiIn a move to alleviate the persisting forex challenges in Nigeria, the Central Bank of Nigeria (CBN) has announced the release of $500 million to address the backlog of verified foreign exchange transactions across various sectors.
The announcement was made by Mrs. Hakama Sidi-Ali, the Acting Director of the CBN’s Corporate Communications Department, during a statement in Abuja on Monday.
Sidi-Ali emphasized the CBN’s commitment to resolving legitimate forex backlogs within a short timeframe. She highlighted that this release follows closely on the heels of a recent payment of approximately $2.0 billion by the apex bank, settling outstanding commitments in crucial sectors like manufacturing, aviation, and petroleum.
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The CBN’s strategy to enhance liquidity in the Nigerian foreign exchange markets, spanning short, medium, and long terms, is already in motion. Sidi-Ali stated that these reforms aim to streamline and unify multiple exchange rates, enhance transparency, and minimize arbitrage opportunities.
“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 asserted.
Expressing confidence that a stable exchange rate would boost investor confidence and attract foreign investment, Sidi-Ali urged market participants to adhere to the rules, underscoring that transparency is key to a fair determination of exchange rates.
Despite these efforts, forex shortages continue to impact the value of Nigeria’s naira currency. Over the last three months, the CBN has successfully cleared nearly $2 billion in overdue foreign exchange forwards.
Hakama Sidi Ali disclosed this information, emphasizing the bank’s commitment to resolving pending obligations and ensuring a functional foreign exchange market.
In a bid to stabilize the volatile foreign exchange market, Nigeria is in the process of securing a $3 billion emergency loan from the Afrexim Bank, and President Bola Tinubu has pledged measures to enhance foreign currency inflows.
