Categories: Forex

CBN Injects US$500 Million to Tackle Forex Backlog Across Sectors

The Central Bank of Nigeria (CBN) has announced the injection of US$500 million into the market.

This move comes hot on the heels of the recent disbursement of approximately $2.0 billion by the apex bank to settle outstanding commitments in key sectors such as manufacturing, aviation, and petroleum.

Mrs. Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at the CBN, confirmed the development in Abuja on Monday.

She reiterated the bank’s commitment to clearing all legitimate forex backlogs and underscored the CBN’s dedication to addressing fundamental challenges within the Nigerian forex markets.

The release of these funds is part of a comprehensive strategy outlined by the CBN to enhance liquidity across short, medium, and long-term horizons within the forex markets.

Governor Olayemi Cardoso has consistently emphasized the importance of tackling underlying issues impeding the efficient functioning of Nigeria’s forex markets.

The ongoing forex market reforms aim to streamline exchange rate systems, enhance transparency, and reduce arbitrage opportunities.

Sidi Ali emphasized the significance of market transparency in fostering fair exchange rate determinations, which ultimately stabilize business and individual transactions.

Over recent months, the CBN has been proactive in releasing various sums to clear the backlog of forex liabilities, signaling a concerted effort to bolster economic stability and investor confidence.

Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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