Business and Economy

CBN releases $500 million into the forex market

The Central Bank of Nigeria (CBN) has taken decisive action to tackle the backlog of verified foreign exchange transactions by releasing $500 million to different sectors. This follows the recent payment of approximately $2.0 billion to settle outstanding commitments in manufacturing, aviation, and petroleum. Mrs. Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at the CBN, emphasized the bank’s commitment to resolving all legitimate foreign exchange backlogs promptly.

She reiterated the Governor’s assurance that the CBN is implementing a comprehensive strategy to enhance liquidity in the Nigerian foreign exchange markets in the short, medium, and long term. By addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets, the CBN aims to streamline exchange rates, promote transparency, and reduce arbitrage opportunities. Sidi Ali expressed confidence that a stable exchange rate would instill investor confidence and attract foreign investment. She urged all market participants to adhere to the rules and emphasized that transparency would ensure fair exchange rate determination and stability for businesses and individuals. It is worth noting that the CBN has released various sums in recent months to clear the backlog of foreign exchange liabilities.

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