Thursday, June 26, 2025
Home Business FOREX CRISIS:  CBN CLEARS VALID FX TRANSACTIONS TO ELIMINATE LEGACY BACKLOG.

FOREX CRISIS:  CBN CLEARS VALID FX TRANSACTIONS TO ELIMINATE LEGACY BACKLOG.

 The Central Bank of Nigeria (CBN) has announced that all valid foreign exchange backlogs have now been settled, fulfilling a key pledge of the CBN Governor, Olayemi Cardoso, to process an inherited backlog of US$7 billion in claims.
This was disclosed by the Bank’s Acting Director, Corporate Communications, Hakama Sidi Ali, in Abuja .
She noted that the CBN recently concluded the payment of $1.5 billion to settle obligations to bank customers, effectively settling the residual balance of the FX backlog.
She also disclosed that independent auditors from Deloitte Consulting meticulously assessed these transactions, ensuring that only legitimate claims were honoured.
Any invalid transactions were promptly referred to the relevant authorities for further scrutiny. At a recent meeting, Governor Cardoso declared: “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 foreign exchange 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 MPC 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 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.
RELATED ARTICLES

WTO APPLAUDS NCS FOR ITS MODERNISATION AND TRADE FACILITATION. 

The Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala has Commended the Nigeria Customs Service (NCS) for its remarkable strides in customs...

NEPZA, FEDERAL CTTEE, DANGOTE REFINERY FZE, TO CRASH DOMESTIC PRICES OF PETROLEUM PRODUCTS.

The trio of the Nigeria Export Processing Zones Authority (NEPZA), One-Stop-Shop Committee on the `Sale of Crude in Naira’, and the Dangote Refinery &...

NIGERIA CUSTOMS, INDIA STRENGTHEN BILATERAL TIES AT WCO POLICY COMMISSION.

The Nigeria Customs Service (NCS) has reaffirmed its commitment to deepening strategic cooperation with the Indian Customs Administration, as both sides advanced discussions on...

Most Popular

WTO APPLAUDS NCS FOR ITS MODERNISATION AND TRADE FACILITATION. 

The Director-General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala has Commended the Nigeria Customs Service (NCS) for its remarkable strides in customs...

NEPZA, FEDERAL CTTEE, DANGOTE REFINERY FZE, TO CRASH DOMESTIC PRICES OF PETROLEUM PRODUCTS.

The trio of the Nigeria Export Processing Zones Authority (NEPZA), One-Stop-Shop Committee on the `Sale of Crude in Naira’, and the Dangote Refinery &...

COMMANDER OPERATION WHIRL STROKE REFUTES SAHARA REPORTERS’ CLAIMS, URGES PUBLIC TO SHUN MISINFORMATION.

  The Force Commander Operation WHIRL STROKE (OPWS), Major General Moses Gara, has categorically refuted a recent report by Sahara Reporters alleging that the Nigerian...

NIGERIA CUSTOMS, INDIA STRENGTHEN BILATERAL TIES AT WCO POLICY COMMISSION.

The Nigeria Customs Service (NCS) has reaffirmed its commitment to deepening strategic cooperation with the Indian Customs Administration, as both sides advanced discussions on...

Recent Comments