CBN releases $500m to clear more verified Forex liabilities

…Embarks on implementation of comprehensive strategy

By Abiodun OBA

The Central Bank of Nigeria (CBN) has begun implementing a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium, and long terms.

CBN’s Acting Director, Corporate Communications Department, Mrs Hakama Sidi-Ali, said this in a statement on Monday in Abuja.

Barely a week after it paid approximately 2.0 billion dollars to settle outstanding commitments across manufacturing, aviation, and petroleum sectors, the Apex Bank says it has released another 500 million dollars to various sectors to address the backlog of verified foreign exchange transactions.

According to Sidi-Ali, the CBN management was committed to settling all legitimate foreign exchange backlogs within a short time frame.

“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 said.

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.

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.

Recall, the CBN, over the past few months, has released various sums in its effort to clear the backlog of foreign exchange liabilities.