CBN Clears $7 Billion FX Backlog, Boosting Economic Confidence

The Central Bank of Nigeria (CBN) has cleared a $7 billion foreign exchange (FX) backlog inherited by Governor Yemi Cardoso.

This accomplishment not only fulfills a key pledge made upon Cardoso’s appointment but also serves as a pivotal step towards restoring confidence in the nation’s economy.

In a statement released on Wednesday, CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, confirmed the settlement of all valid FX backlog claims.

The meticulous process involved the engagement of Deloitte Consulting, an independent auditing firm, to assess the transactions thoroughly.

Ali emphasized that only legitimate claims were honored, with any invalid transactions promptly referred to relevant authorities for further investigation.

The resolution of the FX backlog underscores CBN’s unwavering commitment to addressing economic challenges head-on.

This commitment appears to be yielding positive results as evidenced by the increase in external reserves, which grew to $34.11 billion as of March 7, 2024 – the highest level recorded in eight months.

Analysts attribute this month-on-month surge in reserves to a combination of factors, including a notable rise in remittance payments from Nigerians abroad and increased foreign investment in local assets, particularly government debt securities.

The CBN’s actions align with a broader strategy outlined during the last Monetary Policy Committee (MPC) meeting, signaling a proactive approach towards stabilizing the economy and fostering sustainable growth.

With the FX backlog now cleared, stakeholders express optimism for a more robust and resilient economic future, buoyed by renewed investor confidence and improved liquidity in the foreign exchange market.