The Central Bank of Nigeria (CBN) has cleared an additional $400 million of foreign exchange (FX) backlog in one week, bringing the total amount of cleared backlog to $1.2 billion since January 2024. The CBN said that the clearing of the backlog was part of its efforts to improve liquidity and stability in the FX market.

The CBN said that it had prioritized the clearing of the backlog of FX obligations for manufacturers, importers, and service providers, who had been facing difficulties in accessing FX due to the COVID-19 pandemic and the oil price shock. The CBN said that it had also increased the supply of FX to the banks and the bureaux de change (BDCs) to meet the demand of the end-users.

The CBN said that the clearing of the backlog and the increased supply of FX had boosted the confidence and optimism of the stakeholders in the FX market, and had also supported the recovery and growth of the economy. The CBN said that it had recorded a positive trade balance of $2.5 billion in the fourth quarter of 2023, and a gross domestic product (GDP) growth of 3.5% in the same period.

The CBN said that it was committed to maintaining a stable and transparent FX regime, and to ensuring the convergence of the official and parallel market rates. The CBN said that it had also introduced several measures and policies to enhance the efficiency and effectiveness of the FX market, such as the Naira 4 Dollar scheme, the e-Naira digital currency, and the FX futures and options contracts.

The CBN said that it was confident that the clearing of the backlog and the increased supply of FX would continue to have a positive impact on the FX market and the economy in general. The CBN said that it would continue to monitor the developments and trends in the FX market, and to intervene as and when necessary to ensure stability and liquidity.

The CBN said that it was grateful to the stakeholders in the FX market, especially the banks, the BDCs, and the customers, for their cooperation and support in the clearing of the backlog and the improvement of the FX market. The CBN said that it hoped that the clearing of the backlog and the increased supply of FX would enhance the competitiveness and productivity of the Nigerian economy, and create more opportunities and prosperity for the people.

Source: BusinessDay