Total settled FX backlog now $2b
In a move intended to send the Naira soaring, the Central Bank of Nigeria (CBN) has disbursed approximately $61.64 million to foreign airlines operating in the country through various banks in fulfilment of its commitment to clear pending matured foreign exchange (FX) obligations.
The move is part of the CBN’s efforts to decrease its remaining liability to the airlines, the apex bank said yesterday. The information was confirmed by the Acting Director of the Corporate Communications Department at the CBN, Hakama Sidi Ali, in Abuja.
Ali further disclosed that, in the past three months, the CBN has also redeemed outstanding forward liabilities amounting to almost $2 billion, underscoring the bank’s commitment to the resolution of pending obligations and stabilising the market.
According to the spokeperson, the payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, with the aim of alleviating the current pressure on naira.
It is anticipated that the action would ease pressure on naira and further increase investor confidence in the Nigeria economy. 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 measure is likely to bolster investor confidence in the Nigerian economy, paving the way for increased investment and economic growth in the first quarter of 2024.
