Nigerian Central Bank Governor Optimistic as Foreign-Exchange Backlog Clears

In an exclusive interview with Arise Television on Monday, Nigerian Central Bank Governor Olayemi Cardoso expressed optimism as Nigeria makes significant progress in clearing its backlog of foreign-exchange contracts.

Cardoso highlighted that the country is on the path to recovery, emphasizing that Nigeria is undergoing positive changes in its economic policies.

The recent depreciation of the naira by 38% prompted the central bank to implement measures aimed at aligning the official and unofficial foreign-exchange markets.

This move is part of a broader strategy to bolster investor confidence and enhance the country’s economic stability.

Cardoso revealed that Nigeria has substantially reduced its backlog of foreign-exchange contracts, with the outstanding amount dwindling to around $2.2 billion.

The central bank has successfully settled approximately $2.3 billion of the contracts while dismissing $2.4 billion due to irregularities and discrepancies.

Addressing the challenges faced by businesses amid the scarcity of dollars in the domestic market, Cardoso assured that the central bank is committed to resolving the backlog expeditiously.

He expressed confidence that Nigeria is nearing the end of this phase, signaling a positive outlook for the country’s currency stability and economic growth.

Cardoso emphasized that the reduction of the backlog, coupled with ongoing economic reforms, will attract foreign investors back to Nigeria.

Despite the recent volatility in the currency market, he reiterated his belief that the naira remains undervalued and emphasized the importance of stabilizing the foreign exchange market to foster economic prosperity.

As Nigeria continues its journey toward economic recovery, the efforts to address the foreign-exchange backlog signify a step in the right direction, instilling hope for a brighter future.