The Central Bank of Nigeria (CBN) confirmed it has settled almost $2 billion of forward liabilities in the past three months.
This was disclosed by the Acting Director of Corporate Communications, Mrs Hakama Sidi-Ali in Abuja on Sunday.
According to her, these payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, to alleviate the current pressure on the country’s exchange. rate.
She further stated that in the past three months, the apex bank has also redeemed outstanding forward liabilities and that the action underscores the Bank’s commitment to the resolution of pending obligations and a functional foreign exchange market.
She also noted that the CBN’s initiative is expected to significantly strengthen the Naira against major world currencies and enhance investor confidence in the Nigerian economy.
- “This underscores the CBN’s commitment to the resolution of pending obligations and a functional foreign exchange market.
- “These payments signify CBN’s ongoing efforts to settle all remaining valid forward transactions, with the aim of alleviating the current pressure on the country’s exchange rate.
- “It is anticipated that this initiative would provide a considerable boost to the Naira against other major world currencies and further increase investor confidence in the Nigerian economy,” Mrs Hakama Sidi-Ali
What you should know
The Governor of the CBN, Yemi Cardoso estimated the figure owed to international businesses operating in Nigeria to be in the region of $7 billion or more during his screening in the senate.
- Settling the FX backlog is expected to relieve the pressure on the naira which has lost over 50% of its value on the official window since the unification of the FX market on June 14, 2023.
- The naira was last exchanged for N869.13 to the USD on the official window according to Nairametrics daily exchange tracker. However, on the parallel market, the naira traded at N1255/$1.
- Reports in November stated that the apex bank has started settling the FX backlog to businesses operating in the country.
- PZ Cussons– a multinational manufacturing business confirmed that it has started cash repatriation to its holding company in the United Kingdom and hopes to complete total cash by end of 2024.
- The CBN had stated in September 2023 that it would clear the FX backlog amounting to around $10 billion in two weeks.