BY OLAPEJU OLUBI
The Central Bank of Nigeria (CBN) has taken audacious steps to gradually clear foreign exchange forwards with the injection of about $2 billion in the foreign exchange market via the commercial banks.
The apex bank also settled part of foreign airlines’ outstanding credit with $61.64 million being debt owed them by Nigeria.
This targeted disbursement, aimed at clearing a portion of the backlog of matured foreign exchange obligations owed to the airlines, marks a significant step towards stabilizing the country’s forex market.
The Acting Director of CBN’s Corporate Communications Department, Mrs. Hakama Sidi Ali who confirmed this development, described it as a welcome relief to foreign airlines grappling with delayed forex access to smoothen their operations.
This latest disbursement forms part of the CBN’s broader commitment to settling all outstanding valid forward transactions, as Mrs Sidi Ali emphasised.
The CBN’s commitment extends beyond just the airlines. In the past three months alone, the Apex Bank has redeemed a staggering $2 billion in outstanding forward liabilities, to show its dedication to resolving pending obligations and fostering a functional foreign exchange market.
These measures are expected to have a ripple effect by alleviating the current pressure on the Naira’s exchange rate, as well as enable a considerable strengthening of the Naira against major world currencies as a result of the CBN’s intervention.
The CBN believes that this is likely to bolster investor confidence in the Nigerian economy, paving the way for increased investment and economic growth.
According to Hakama Sidi-Ali,
“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.
“It is anticipated that this initiative by the CBN should provide a considerable boost to the Naira against other major world currencies and further increase investor confidence in the Nigeria economy.”
