The Central Bank of Nigeria (CBN) has infused an additional $500 million into the foreign exchange market to tackle the persistent backlog of confirmed forex transactions.
This revelation was made by Mrs. Hakama Sidi Ali, Acting Director of the Corporate Communications Department at the CBN, during a press briefing held in Abuja on Monday, January 29.
Mrs. Sidi Ali underscored the commitment of the central bank, stating, “The Management of the CBN is resolute in clearing all legitimate foreign exchange backlogs within a short time frame.”
She assured the public that the CBN is executing a comprehensive strategy designed to enhance liquidity in the Nigerian foreign exchange markets across short, medium, and long-term horizons.
The strategy, as explained by Sidi Ali, is laser-focused on addressing longstanding issues that have hindered the efficient operation of the Nigerian forex markets.
Key components include streamlining and unifying multiple exchange rates, promoting transparency, and reducing arbitrage opportunities.
The governor emphasized on resolving fundamental issues, Sidi Ali stated, “The CBN’s focus is squarely on addressing the underlying challenges that have impeded the effective operation of the Nigerian FX markets over the years.”
She expressed confidence that achieving a stable exchange rate would not only boost investor confidence but also attract foreign investment.
“We believe that a stable exchange rate will bolster investor confidence and attract foreign investment,” she remarked.
Sidi Ali urged all participants in the forex market to abide by the rules, emphasizing that transparency would facilitate a fair determination of exchange rates, ensuring stability for businesses and individuals alike.
This $500 million injection by the CBN is the latest in a series of measures implemented in recent months, underscoring the central bank’s ongoing commitment to addressing the forex backlog and maintaining stability in the forex market.
