The Central Bank of Nigeria, CBN, has released $500 million to various sectors in its determination to address the backlog of verified foreign exchange transactions.
CBN’s Acting Director, Corporate Communications Department, Hakama Sidi-Ali, disclosed this in a statement in Abuja on Monday, January 29.
Sidi-Ali said this is coming barely a week after the apex bank paid approximately $2 billion to settle outstanding commitments across various sectors.
According to her, the management of the CBN was committed to settling all legitimate foreign exchange backlogs within a short time frame.
Speaking further, Sidi-Ali said the CBN had commenced 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 foreign exchange markets over the years,” she said.
Meanwhile, Sidi-Ali revealed that the foreign exchange 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, thereby, 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.
The CBN, over the past few months, has released various sums in its effort to clear the backlog of foreign exchange liabilities.
Comments