The Central Bank of Nigeria (CBN) has confirmed the settlement of all valid foreign exchange backlogs totaling $7 billion, in line with the commitment made by its Governor, Mr. Olayemi Cardosoo.
According to a statement released on Wednesday by the apex bank’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, independent auditors from Deloitte Consulting rigorously assessed these transactions to ensure that only legitimate claims were processed and honored.
Mrs. Ali further stated that the CBN recently concluded the disbursement of $1.5 billion to settle obligations to bank customers, effectively clearing the remaining balance of the FX backlog.
Speaking at a recent meeting, Governor Cardoso emphasized, “We prioritized clearing the FX backlog to restore credibility and confidence in the Nigerian economy. It was imperative that we underwent an independent and credible process to authenticate these obligations, and I can confirm that we have now addressed all genuine and verifiable transactions.”
The resolution of the foreign exchange transactions backlog is part of the comprehensive strategy outlined in the Monetary Policy Committee meeting held last month, aimed at stabilizing the exchange rate to mitigate imported inflation and bolster confidence in the banking system and the economy.
Governor Cardoso used both the MPC meeting and a subsequent conference call with foreign portfolio investors to outline expectations for sustained growth in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market.
Furthermore, the CBN reported a significant increase in external reserves this month, surging by $993 million to reach $34.11 billion as of March 7, 2024, marking the highest level in eight months.
This upswing was driven by a notable rise in remittance payments from Nigerians abroad, as well as increased purchases of local assets, including government debt securities, by foreign investors.
