The Central Bank of Nigeria (CBN) has released an additional $500 million to various sectors, coming barely a week after the apex bank paid approximately US $2.0 billion to settle outstanding FX backlogs across manufacturing, aviation, and petroleum sectors.
Hakama Sidi Ali, CBN Acting Director of the Corporate Communications Department announced this in a statement in Abuja on Monday. Though she didn’t mention the sectors in which the money was released, she assured of the apex bank’s commitment to settling all legitimate FX backlogs within a short time frame.
Reiterating the assurances of the CBN governor, Olayemi Cardoso, Sidi Ali said the CBN had begun implementing a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium, and long term.
“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,” she noted.
According to her, the ongoing FX market reforms are designed to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities.
She also expressed confidence that a stable exchange rate would boost investor confidence and attract foreign investment, and urged all participants in the market to play by the rules, stressing that transparency in the market would enable the fair determination of exchange rates and, by extension, guarantee stability for businesses and individuals.
