The Central Bank of Nigeria (CBN) has announced the clearance of all forex backlogs, a significant stride towards economic stabilization.
This achievement fulfills a commitment made by CBN Governor, Mr Olayemi Cardoso, to address an inherited backlog of $7bn in claims.
Strategic Approach For Forex Backlog
CBN’s Acting Director of Corporate Communications, Mrs Sidi Ali, highlighted the meticulous efforts undertaken to settle outstanding transactions.
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Independent auditors from Deloitte Consulting ensured that only legitimate claims were honored, with invalid transactions promptly flagged for scrutiny.
Boost in External Reserves After Forex Clearance
The CBN reported a notable increase in external reserves, soaring by $993m to $34.11bn as of March 7, 2024, the highest level in eight months.
This rise was fueled by increased remittance payments by Nigerians overseas and higher purchases of local assets by foreign investors.
Mr Cardoso emphasized the importance of clearing the FX backlog to restore credibility and confidence in the Nigerian economy.
This action aligns with strategies outlined in the Monetary Policy Committee meetings aimed at stabilizing the exchange rate and curbing imported inflation.
Speaking at recent meetings and conferences, Mr Cardoso reiterated expectations for sustained increases in Nigeria’s foreign currency reserves and improved liquidity in the foreign exchange market. He stated, “This encumbrance to market confidence in the country’s ability to meet its obligations is now totally behind us.”
Forex Backlog Clearance Implications for Growth
The successful clearance of the FX backlog marks a pivotal moment for Nigeria’s financial landscape, paving the way for a more resilient and stable economy.
As the nation progresses, this achievement serves as a beacon of confidence for investors and businesses, fostering an environment conducive to growth.
In summary, the clearance of the FX backlog by the CBN signifies a proactive step towards economic stability and growth, reflecting the commitment to transparent and effective financial management.