From Victor Osula, Abuja
The Central Bank of Nigeria, CBN, on Monday released $500 million to various sectors in its determination to address the backlog of verified foreign exchange transactions.
The Acting Director of the Corporate Communications Department at the CBN, Mrs Hakama Sidi Ali, who disclosed this on Monday, in Abuja, noted that the Management of the CBN was committed to settling all legitimate foreign exchange backlogs within a short time frame.
Sidi, while reiterating the assurances of the apex bank Governor, Olayemi Cardoso, said the CBN had begun implementing a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium, and long term.
“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 added.
While noting that the forex market reforms were designed to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities, Sidi Ali expressed confidence that a stable exchange rate would boost investor confidence and attract foreign investment.
She, therefore, urged all participants in the market to play by the rules, stressing that transparency in the market would enable the fair determination of exchange rates and by extension, guarantee stability for businesses and individuals alike.
Monday’s transaction comes barely a week after the Bank paid approximately $2.0 billion to settle outstanding commitments across manufacturing, aviation, and petroleum sectors.
