ENUGU, Nigeria (VOICE OF NAIJA)- As part of moves to tackle the persistent backlog of verified foreign exchange (forex) transactions, the Central Bank of Nigeria (CBN) has injected an additional $500 million into the market.
This development comes just a week after the bank injected approximately $2 billion to settle outstanding commitments in key sectors such as manufacturing, aviation, and petroleum.
Mrs. Hakama Sidi Ali, Acting Director of the Corporate Communications Department at the CBN, announced this initiative in Abuja on Monday, 29 January, 2024.
She reiterated the CBN’s commitment to swiftly addressing all legitimate forex backlogs, emphasizing, “The Management of the CBN is committed to settling all legitimate foreign exchange backlogs within a short time frame.”
Sidi Ali assured Nigerians that the apex bank is implementing a comprehensive strategy to enhance liquidity in the Nigerian foreign exchange markets, spanning the short, medium, and long term.
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According to the CBN spokesperson, this strategy is designed to tackle fundamental issues that have impeded the effective operation of the Nigerian forex markets over the years.
She stated, “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.”
Highlighting the aim of the forex market reforms, Sidi Ali explained that they seek to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities.
She expressed confidence that a stable exchange rate would enhance investor confidence and attract foreign investment. “We believe that a stable exchange rate will boost investor confidence and attract foreign investment,” she affirmed.
Sidi Ali urged all participants in the forex market to adhere to the rules, emphasizing that transparency would ensure fair determination of exchange rates and stability for businesses and individuals.
“We urge all participants in the market to play by the rules. Transparency in the market will enable the fair determination of exchange rates and, by extension, guarantee stability for businesses and individuals alike”, she said.
The CBN’s latest intervention is part of a series of measures undertaken in recent months to clear the forex backlog, aiming to stabilize the forex market and stimulate economic activity in Nigeria.