By Abiola Olawale
The Central Bank of Nigeria (CBN) says it has achieved a noteworthy milestone by clearing the $7 billion foreign exchange (FX) backlog, some of which dates before the appointment of Governor Yemi Cardoso.
The Apex bank claims that the clearance of this backlog is a significant step towards stabilizing the foreign exchange market and boosting investor confidence in the country.
According to the CBN, this action is expected to mitigate the negative impact of past FX restrictions on businesses, improve access to foreign currency, and ultimately stimulate economic growth.
This development which was contained in a statement on Wednesday, by CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, appears to have had positive impact on the naira valuation.
According to the statement, the CBN employed Deloitte Consulting, an independent auditing firm, to meticulously assess the transactions, ensuring that only legitimate claims were honored.
“Any invalid transactions were referred to the relevant authorities for further investigation,” she stated.
The CBN’s commitment to tackling the FX backlog appears to be paying off, the statement added.
Also, in another significant development, the bank said the external reserves have seen a significant rise, reaching $34.11 billion as of March 7, 2024, the highest level in eight months.
CBN atttibutes thus month-on-month increase to a notable rise in remittance payments from Nigerians abroad and increased foreign investment in local assets, including government debt securities.
