Barely a week after paying around US $2.0 billion to clear outstanding foreign exchange backlogs in the manufacturing, aviation, and petroleum sectors, the Central Bank of Nigeria (CBN) has disbursed an additional $500 million to various sectors.
In an announcement made on Monday in Abuja, Hakama Sidi Ali, the CBN Acting Director of the Corporate Communications Department, made this announcement. Despite not naming the industries where the funds were disbursed, she pledged that the top bank will quickly clear all valid foreign exchange backlogs.
Sidi Ali reiterated Olayemi Cardoso, the governor of the CBN,’s guarantees and stated that the CBN had started putting a comprehensive plan into action to increase liquidity in the Nigerian foreign exchange markets over the short, medium, and long terms.
She stated, “The CBN’s focus is on addressing fundamental issues that have hindered the Nigerian FX markets’ effective operation over the years, as the Governor said.”
As per her statement, the current reforms in the foreign exchange market aim to simplify and harmonize various exchange rates, promote openness, and diminish the chances of arbitrage.
She also urged all market participants to follow the rules, stating that transparency would allow for the fair determination of exchange rates and, consequently, guarantee stability for both individuals and businesses. She expressed confidence that a stable exchange rate would increase investor confidence and attract foreign investment.
