In a bid to tackle the persistent backlog of confirmed foreign exchange (forex) transactions, the Central Bank of Nigeria (CBN) has injected an additional $500 million into the market. Mrs. Hakama Sidi Ali, Acting Director of the Corporate Communications Department at the CBN, disclosed this development in Abuja on Monday, January 29.
Reaffirming the CBN’s commitment to resolving legitimate forex backlogs promptly, Sidi Ali stated, “The Management of the CBN is committed to settling all legitimate foreign exchange backlogs within a short time frame.”
To address issues that have hindered the effective operation of the Nigerian forex markets, the apex bank is implementing a comprehensive strategy, focusing on short, medium, and long-term solutions. The reforms aim to streamline and unify multiple exchange rates, enhance transparency, and reduce arbitrage opportunities.
“The CBN’s focus is on addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years,” emphasized Sidi Ali.
The Acting Director highlighted the importance of stable exchange rates in boosting investor confidence and attracting foreign investment. She expressed confidence that these measures would contribute to creating a more predictable and conducive environment for businesses and individuals.
“We believe that a stable exchange rate will boost investor confidence and attract foreign investment,” said Sidi Ali.
Urging participants in the forex market to adhere to regulations and embrace transparency, Sidi Ali emphasized that a fair determination of exchange rates would lead to stability for businesses and individuals alike.
The CBN’s latest intervention is part of a series of measures implemented in recent months to address forex backlogs and enhance the overall efficiency of the Nigerian forex market. As the apex bank continues to actively engage in interventions, the goal remains to foster a robust and transparent forex market that supports economic growth and stability.
