CBN CLEARS ALL $7B FOREX BACKLOG
The Central Bank of Nigeria (CBN) has resolved all $7 billion worth of foreign exchange (forex) backlog inherited by Governor Yemi Cardoso.
Mrs. Hakama Sidi Ali, acting director of Corporate Communications at the Central Bank of Nigeria (CBN), confirmed the settlement of all valid forex backlog claims in a statement.
She clarified that Deloitte Consulting, an independent auditing firm, was engaged by the CBN to meticulously assess the transactions, ensuring that only legitimate claims were honored.
“Any invalid transactions were referred to the relevant authorities for further investigation,” Sidi Ali stated.
Governor Cardoso had previously stressed the importance of clearing the backlog to restore credibility in the Nigerian economy, expressing satisfaction in completing a credible process to verify the authenticity of obligations and clear all genuine, verifiable transactions.
He highlighted the significance of resolving this issue, stating that it removes a burden on market confidence in the country’s ability to meet its obligations.
The CBN’s commitment to addressing the forex backlog has yielded positive results, with external reserves reaching their highest level in nine months due to increased remittance payments from Nigerians abroad and greater foreign investment in local assets, including government debt securities.
These actions are part of a broader strategy outlined during the last Monetary Policy Committee (MPC) meeting to stabilize the exchange rate, curb imported inflation, and foster a more predictable economic environment.
Sidi Ali emphasized that clearing the backlog demonstrates the CBN’s commitment to transparency and accountability, potentially boosting confidence in the financial sector.
Analysts believe that increased foreign exchange reserves and improved liquidity in the forex market can support economic growth by facilitating international trade and investment. They commended Cardoso’s efforts to address the forex backlog and strategically manage foreign reserves, highlighting the CBN’s focus on creating a more stable and investor-friendly Nigerian economy.
Source: Adetunji Tobi; Techeconomy
