CBN Injects Another $500m Into Forex Market, Vows To Clear Backlogs

The Central Bank of Nigeria (CBN) has injected an additional $500 million into the forex market to tackle the persistent backlog of verified forex transactions.

This move follows a recent injection of approximately $2 billion to settle outstanding commitments in key sectors.

VerseNews reports that the Acting Director of the Corporate Communications Department at the CBN, Mrs. Hakama Sidi Ali made this known made this known in Abuja on Monday, January 29.

Ali emphasized the bank’s commitment to addressing legitimate forex backlogs promptly.

She highlighted the CBN’s comprehensive strategy to enhance liquidity in the Nigerian forex markets, focusing on fundamental issues that have impacted their effective operation.

“In the past three months, the CBN has also redeemed outstanding forward liabilities amounting to almost USD 2 billion.”

“This underscores the Bank’s commitment to the resolution of pending obligations and a functional foreign exchange market.”

Nigeria’s foreign currency shortages have been worsened by declining oil production, which is the country’s largest export, accounting for more than 90% of dollar inflows.

Ali said the CBN had recently paid $61.64 million to foreign airlines, who sold tickets in the local naira currency but have not been able to get their money out of the country.

Foreign airlines were owed more than $700 million at the end of November.

“These payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, with the aim of alleviating the current pressure on the country’s exchange rate,” Ali said.

President Bola Tinubu has promised to boost foreign currency inflows into Nigeria by attracting new investment, ramping up oil production and reforming the foreign exchange market.