JUST IN: CBN Successfully Clears $7 Billion FX Backlog, Restoring Market Confidence

The Central Bank of Nigeria (CBN) has achieved a significant milestone by clearing all valid foreign exchange backlogs totaling $7 billion, fulfilling a crucial promise made by Governor Mr. Olayemi Cardosoo. This announcement was made by Mrs. Hakama Sidi Ali, the Acting Director of Corporate Communications at the CBN, in Abuja on Wednesday.

Mrs. Ali confirmed that independent auditors from Deloitte Consulting meticulously reviewed and verified these transactions, ensuring that only legitimate claims were honored. The recent payment of $1.5 billion effectively settled the residual balance of the FX backlog, addressing obligations to bank customers.

Governor Cardoso emphasized the importance of prioritizing the clearance of the FX backlog to restore credibility and confidence in the Nigerian economy. He highlighted the rigorous and independent process undertaken to authenticate these obligations, assuring stakeholders that all genuine and verifiable transactions have been cleared.

The clearance of the foreign exchange transactions backlog aligns with the comprehensive strategy outlined during the Monetary Policy Committee meeting to stabilize the exchange rate and mitigate imported inflation, thereby fostering confidence in the banking system and the economy.

During the MPC meeting and subsequent engagements with foreign portfolio investors, Governor Cardoso set expectations for sustained increases in Nigeria’s foreign currency reserves and enhanced liquidity in the foreign exchange market.

In a positive development, the CBN reported a substantial increase in external reserves, reaching $34.11 billion as of March 7, 2024, the highest level in eight months. This growth was attributed to a notable rise in remittance payments by Nigerians abroad and increased purchases of local assets, including government debt securities, by foreign investors.