A few days ago, the apex bank injected nearly $2 billion to settle outstanding commitments across the manufacturing, aviation, and petroleum sectors.
The Central Bank of Nigeria (CBN) has announced it has injected another $500 million into the foreign exchange market.
A few days ago, the apex bank injected nearly $2 billion to settle outstanding commitments across the manufacturing, aviation, and petroleum sectors.
CBN's Acting Director of the Corporate Communications Department, Mrs. Hakama Ali, who revealed the injection of the funds on Monday in Abuja, reiterated the bank’s commitment to settling all legitimate forex backlogs within a short timeframe, The Nation reports.
Mrs Ali said, “The Management of the CBN is committed to settling all legitimate foreign exchange backlogs within a short time frame.”
Sidi Ali also assured Nigerians that the CBN is implementing a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium, and long term.
This strategy, according to the CBN spokesperson, is focused on addressing fundamental issues that have hindered the effective operation of the Nigerian forex markets over the years.
She added: “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.”
The forex market reforms, Sidi Ali explained, are designed to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities. She expressed confidence that a stable exchange rate would boost investor confidence and attract foreign investment.
She said: “We believe that a stable exchange rate will boost investor confidence and attract foreign investment.”
While appealing to the participants in the forex market to play by the rules, Ali insisted that transparency in the market would enable the fair determination of exchange rates and, by extension, guarantee stability for businesses and individuals alike.
“We urge all participants in the market to play by the rules. Transparency in the market will enable the fair determination of exchange rates and, by extension, guarantee stability for businesses and individuals alike," she said.
She explained that the intervention was part of a series of measures taken by the apex bank in recent months to address the forex backlog.
Recently, the bankers’ bank released various sums in its effort to clear the backlog of foreign exchange liabilities with the hope that the interventions would help stabilise the forex market and boost economic activity in Nigeria.