The Central Bank of Nigeria (CBN) has announced that it has successfully cleared all valid foreign exchange backlogs.
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Hakaa Sidi Ali, acting Director of Corporate Communications at the Apex bank disclosed this in a statement on Wednesday.
The statement read that the financial regulator recently concluded the payment of $1.5 billion to settle obligations to bank customers, effectively settling the residual balance of the FX backlog.
Speaking further, Ali disclosed that “independent auditors from Deloitte Consulting meticulously assessed these transactions, ensuring that only legitimate claims were honoured.”
The invalid transactions has been referred to the relevant authorities for further scrutiny, he added.
Clearing of the foreign exchange transactions backlog is part of the bank’s overall strategy to stabilise the exchange rate. This will curb “imported inflation, spur confidence in the banking system and the economy.”
CBN Governor, Mr Olayemi Cardoso on assumption of office vowed to address an inherited backlog of US$7 billion in claims.
He therefore made clearing the FX backlog a priority to restore credibility and confidence in the Nigerian economy.
The CBN also reported an increase in external reserves.
“The CBN followed this month by reporting a significant increase in external reserves, rising by $993 million to $34.11 billion as of March 7, 2024, the highest level in eight months.”
“The month-on-month increase was driven by a marked advance in remittance payments by Nigerians overseas, as well as higher purchases of local assets, including government debt securities, by foreign investors,” the statement read.
The 294th meeting of the Monetary Policy Committee (MPC) is scheduled to hold on 25th and 26th of March.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
