The Central Bank of Nigeria has officially confirmed the settlement of all valid foreign exchange backlogs totaling $7 billion, fulfilling a significant commitment made by its Governor, Mr. Olayemi Cardosoo.
Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at the apex bank, affirmed in a statement released on Wednesday in Abuja that independent auditors from Deloitte Consulting meticulously reviewed these transactions, ensuring that only legitimate claims were honored.
According to Ali, the CBN recently concluded the payment of $1.5 billion to fulfill obligations to bank customers, effectively resolving the remaining balance of the FX backlog. Governor Cardoso emphasized the priority placed on clearing the FX backlog to restore credibility and confidence in the Nigerian economy during a recent meeting.
“We deemed it imperative to undergo an independent and credible process to authenticate these obligations, and at this juncture, I am pleased to announce that all genuine, verifiable transactions have been cleared. This obstacle to market confidence in the country’s ability to fulfill its obligations is now completely resolved,” he stated.
The clearance of the foreign exchange transactions backlog is part of the comprehensive strategy outlined during last month’s Monetary Policy Committee meeting to stabilize the exchange rate and mitigate imported inflation, thereby fostering confidence in the banking system and the overall economy.
Cardoso utilized the MPC meeting and subsequent conference calls with foreign portfolio investors to set expectations for sustained increases in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market.
Subsequently, the CBN reported a significant increase in external reserves this month, rising by $993 million to reach $34.11 billion as of March 7, 2024, marking the highest level in eight months.
This month-on-month increase was attributed to a notable surge in remittance payments from Nigerians abroad, as well as heightened purchases of local assets, including government debt securities, by foreign investors.
