By Bolaji Peters (SIWES student, Polytechnic Iresi)
The Central Bank of Nigeria has disbursed $500 million to address a verified backlog of foreign exchange transactions, following a recent payment of $2 billion to settle outstanding commitments across diverse sectors.
Acting director of the Corporate Communications Department, Mrs. Hakama Sidi-Ali, affirmed the bank’s commitment to supporting the economy and maintaining a robust foreign exchange market.
Ensuring timely processing of all verified foreign exchange orders is a top priority for the CBN, which is devising a comprehensive strategy to enhance liquidity in Nigerian foreign exchange markets across short, medium, and long terms.
This strategy targets fundamental challenges that have impeded market efficiency, with the ultimate aim of fostering a more effective and efficient foreign exchange ecosystem benefiting all sectors reliant on foreign exchange.
The ongoing forex market reforms, including the streamlining and unification of multiple exchange rates, emphasize transparency and aim to diminish arbitrage opportunities.
These reforms align with the CBN’s mandate to promote price stability and a resilient economy, with collaborative efforts with stakeholders pivotal to their success.
CBN spokesperson underscored the significance of a stable exchange rate in bolstering investor confidence and attracting foreign investment, urging adherence to market regulations and emphasizing transparency.
The bank’s recent disbursements toward clearing foreign exchange liabilities underscore its dedication to enhancing market efficiency and stability, with transparency serving as a cornerstone for market health.
