The Central Bank of Nigeria (CBN) has cleared all valid foreign exchange backlogs in fulfilment of the promise by the Governor, Mr. Olayemi Cardoso, to process for payment an inherited backlog of US$7 billion in claims.
The apex bank’s Acting Director, Corporate Communications, Mrs. Hakama Sidi Ali, made this disclosure in a statement issued on Wednesday in Abuja
She recalled that the CBN recently concluded the payment of $1.5 billion to settle obligations to bank customers, effectively offsetting the residual balance of the FX backlog.
According to her, independent auditors from Deloitte Consulting recently assessed the transactions, ensuring that only legitimate claims are settled and any invalid transaction are promptly referred to the relevant authorities for further scrutiny.
At a recent meeting, the CBN Governor clarified: “We made clearing the FX backlog a priority to restore credibility and confidence in the Nigerian economy.
“It was important that we go through an independent and credible process that would determine the authenticity of those obligations, and, at this point, I can tell you that we have now cleared all genuine, verifiable transactions. This encumbrance to market confidence in the country’s ability to meet its obligations is now totally behind us”, he added.
Clearance of the FX transactions backlog is part of the overall strategy detailed in last month’s Monetary Policy Committee meeting to stabilise the exchange rate and thereby curb imported inflation, spurring confidence in the banking system and the economy.
Cardoso used the opportunity availed by committee’s meeting and a subsequent conference call with foreign portfolio investors to set expectations for sustained increases in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market.
The apex bank 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 apex bank attributed the month-on-month increase to a significant surge in remittance payments by Nigerians in overseas countries, as well as higher purchases of local assets, including government debt securities by foreign investors.
