The Central Bank of Nigeria has announced the disbursement of $500 million across diverse sectors as part of its efforts to tackle the backlog of verified foreign exchange transactions.
This disclosure was made by Mrs. Hakama Sidi-Ali, the Acting Director of the Corporate Communications Department, in a statement released on Monday in Abuja.
Sidi-Ali highlighted that this development follows closely on the heels of the central bank’s recent payment of approximately $2 billion to settle outstanding commitments across various sectors.
Emphasizing the commitment of the CBN’s management, she stated their determination to clear all legitimate foreign exchange backlogs promptly.
Furthermore, Sidi-Ali revealed that the CBN is actively implementing a comprehensive strategy to enhance liquidity in the Nigerian foreign exchange markets across short, medium, and long-term perspectives. Quoting the Governor, she reiterated the central bank’s focus on addressing fundamental issues that have historically impeded the effective functioning of the Nigerian FX markets.
Meanwhile, Sidi-Ali said that the forex 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.
Speaking further, she 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.
