CBN clears additional $400m FX backlog

The Central Bank of Nigeria (CBN) said it has on Tuesday cleared an additional $400 million foreign exchange (FX) backlog of identified, genuine forward requests.

Yemi Cardoso disclosed this on Tuesday after the two-day Monetary Policy Committee (MPC) meeting, which raised the Monetary Policy Rate (MPR) by 400 basis points to 22.75 percent from 18.75 in July 2023.

He also noted that Nigeria’s external reserves have risen to $34 billion as against $33 billion at the beginning of the year.

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“We are committed to clearing the FX backlog of identified and genuine requests that are pending. We paid $400 million FX backlogs that are so identified. We will continue to do so in one form or the other,” Cardoso said during a press briefing on the outcome of the MPC.

“The CBN has said that it will clear ‘all genuine FX backlog requests’. For as long as this remains the official line, it suggests that the FX demand backlog that does not meet the requisite hurdle will seek a route through the parallel market instead. More reassurance – perhaps in the form of positive real rates – may yet be needed to stabilise markets,” Razia Khan, managing director, Chief Economist, Africa and Middle East Global Research at Standard Chartered Bank, said.

On February 5, 2024, the CBN said it has reduced the $7 billion FX backlog it inherited to $2.2 billion and vowed it was working to clear the outstanding balance.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.