To offset cumulative foreign exchange liabilities weighing down growth in the country’s economy, the Central Bank of Nigeria (CBN) on Monday announced the injection of $500million into key sector to boost productivity.
The injection of the FX is coming barely a week after the apex bank released about $2billion for the settlement of verified outstanding foreign exchange transaction commitments across manufacturing, aviation, and Petroleum sectors.
The Acting Director of the Corporate Communications Department at the CBN, Hakama Sidi Ali, who disclosed this in Abuja said CBN management was committed to settling all legitimate foreign exchange backlogs within a short time frame. Restating the assurances of the CBN Governor, Olayemi Cardoso, Sidi Ali said the Bank had begun implementing a comprehensive strategy to improve liquidity flow in the Nigerian foreign exchange markets in the short, medium, and long term.
“The CBN’s focus is on addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years,” Sidi Ali quoted the CBN governor as saying. Noting that the foreign exchange market reforms were designed to streamline and unify multiple exchange rates in the economy, foster transparency, and reduce arbitrage opportunities, Sidi Ali expressed confidence that a stable exchange rate would boost investor confidence and attract foreign investment.
Reiterating the need for transparency and accountability, the CBN spokesperson urged all participants in the market to play by the rules, stressing that transparency in the market would enable the fair determination of exchange rates and, by extension, guarantee stability for all individuals and businesses.
The release of the FX followed similar releases by the CBN over the past few months in its effort to clear the backlog of foreign exchange liabilities in various sectors of the economy.
