By Sabiu Abdullahi
The Central Bank of Nigeria (CBN) has announced the successful settlement of all outstanding foreign exchange (FX) obligations, marking a significant milestone in its efforts to stabilise the country’s economy.
Acting Director of Corporate Communications, Mrs. Sidi Ali, conveyed this update in a statement released to journalists on Wednesday.
Ali revealed that the CBN recently finalised the payment of obligations to bank customers, effectively clearing the residual balance of the FX backlog.
This development follows CBN Governor Yemi Cardoso’s revelation last month that he inherited a $7 billion FX backlog upon assuming office, a figure that has now been reduced to $2.2 billion.
Speaking on the significance of this achievement, Ali stated that the clearance of the FX transactions backlog aligns with the comprehensive strategy outlined during last month’s Monetary Policy Committee meeting.
This strategy aims to stabilize the exchange rate, mitigate imported inflation, and instill confidence in both the banking system and the broader economy.
Cardoso utilised the MPC meeting and subsequent engagements with foreign portfolio investors to articulate expectations for sustained increases in Nigeria’s foreign currency reserves and enhanced liquidity in the FX market.
Acknowledging the importance of restoring credibility and confidence, Cardoso affirmed that clearing the FX backlog was prioritised to address market concerns and bolster faith in the Nigerian economy.
Ali further noted the meticulousness of the clearance process, noting that it was imperative to undergo an independent and credible evaluation to authenticate the obligations.
With the completion of this process, all genuine and verifiable transactions have been settled, effectively eliminating any encumbrances to market confidence in Nigeria’s ability to fulfill its obligations.
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