CBN Injects $500 Million to Tackle Forex Backlog

By Iyojo Ameh

In a recent development, the Central Bank of Nigeria (CBN) has infused an additional $500 million into the foreign exchange market to alleviate the persisting backlog of confirmed forex transactions.

The disclosure was made by Mrs. Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at the CBN, during a press briefing in Abuja on Monday, January 29.

Expressing the commitment of the central bank, Mrs. Sidi Ali stated, “The Management of the CBN is committed to settling all legitimate foreign exchange backlogs within a short time frame.

She reassured the public that the CBN is implementing a comprehensive strategy aimed at enhancing liquidity in the Nigerian foreign exchange markets in the short, medium, and long term.

Highlighting the focus of the strategy, Sidi Ali emphasized that it aims to address longstanding issues hindering the effective operation of the Nigerian forex markets. The reforms include streamlining and unifying multiple exchange rates, fostering transparency, and minimizing arbitrage opportunities.

According to Sidi Ali, the Governor of the CBN emphasized the institution’s commitment to resolving fundamental issues that have impeded the effective functioning of the Nigerian FX markets over the years. She expressed confidence that achieving a stable exchange rate would instill investor confidence and attract foreign investment.

“We believe that a stable exchange rate will boost investor confidence and attract foreign investment,” she stated.

Sidi Ali urged all participants in the forex market to adhere to rules, emphasizing that transparency would facilitate the fair determination of exchange rates, ensuring stability for businesses and individuals alike.

This recent injection of $500 million by the CBN is part of a series of measures undertaken by the central bank in recent months to address the forex backlog, demonstrating its ongoing efforts to stabilize the forex market.