Just in: CBN pumps $500m into forex market, vows to resolve all backlogs soon

The Central Bank of Nigeria (CBN) says it has pumped an additional $500 million into the volatile foreign exchange market to address persistent transaction backlogs.

The latest development from the bank of Lenders of Last Resort (LoR) comes barely a week after disbursing approximately $2 billion aimed at settling outstanding commitments in key sectors.

Mrs. Hakama Sidi-Ali, Acting Director of the Corporate Communications Department at the CBN, made this known in Abuja on Monday.

According to her, all forex backlogs will be resolved in a short timeframe by the bank.

Sidi-Ali said: “The management of the CBN is committed to settling all legitimate foreign exchange backlogs within a short time frame.”

She assured Nigerians that the CBN is implementing a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium, and long term.

This strategy, according to the CBN spokesperson, is focused on addressing fundamental issues that have hindered the effective operation of the Nigerian forex markets over the years.

She added: “As the governor said, the CBN’s focus is on addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years.”

PerSecondNews recalls that the apex bank paid approximately $2 billion in its bid to clear the backlog of outstanding foreign exchange liabilities across various sectors.

According to a statement, the benefiting sectors include manufacturing, aviation, and petroleum.

Sidi-Ali said the bank had also cleared the entire liability of 14 banks and started settlements with foreign airlines, adding that it would continue the settlement of the verified FX backlog.

She said that payment of the FX backlog for qualified transactions had commenced, adding that the CBN had commissioned an independent forensic review by a reputable firm.