Central Bank of Nigeria Injects $500 Million to Address Forex Backlog

In a bid 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 move follows a recent injection of approximately $2 billion aimed at settling outstanding commitments in key sectors.

The Acting Director of the Corporate Communications Department at the CBN, Mrs. Hakama Sidi Ali, announced the latest injection, emphasizing the bank’s commitment to resolving legitimate forex backlogs promptly.

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Ali stated, “The Management of the CBN is committed to settling all legitimate foreign exchange backlogs within a short time frame.” She further assured Nigerians that the CBN is implementing a comprehensive strategy to enhance liquidity in the forex markets, addressing long-standing issues.

The ongoing reforms in the forex market focus on streamlining and unifying multiple exchange rates, promoting transparency, and reducing arbitrage opportunities. The CBN aims to achieve a stable exchange rate, fostering investor confidence and attracting foreign investment.

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The CBN spokesperson urged all participants in the forex market to adhere to rules, emphasizing that transparency is crucial for fair exchange rate determination, providing stability for businesses and individuals.

This intervention is part of the CBN’s continuous efforts to clear the forex backlog and stabilize the market. The central bank has released various sums in recent months for this purpose, signaling a commitment to boosting economic activity in Nigeria. Investors and market participants are keenly observing these interventions for their impact on the overall forex market stability.