Tuesday, April 23, 2024
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

NCS PARTNERS  NFIU TO ENHANCE BORDER SECURITY.

The Nigeria Customs service says it will collaborate with Nigerian Financial Intelligence Unit  to enhance border security through intensifying onslaught against smugglers and money...

NAICOM PARTNERS DRTS TO ADDRESS THIRD PARTY VEHICLE INSURANCE.

National Insurance Commission (NAICOM) is set partner with the FCTA Directorate of Road Transport Service so as to address the issue of FAKE” Third (3rd)...

NIGERIAN ECONOMY RECORDS OVER $1.5 BILLION INFLOW POST-CBN MPC AS NAIRA TRADES N1,309/$1 AT NAFEM.

 The Central Bank of Nigeria (CBN) says the inflow of over $1.5 billion into the economy over the past few days indicates that its...

Most Popular

INSECURITY: BADARU CALLS FOR SYNERGY WITH LIBYA TO STOP PROLIFERATION OF SMALL ARMS AND LIGHT WEAPONS.

The Honourable Minister of Defence, H.E. Muhammed Badaru Abubakar CON, mni, has called on Libyan Government to join hands with the Nigerian Government to...

NCS PARTNERS  NFIU TO ENHANCE BORDER SECURITY.

The Nigeria Customs service says it will collaborate with Nigerian Financial Intelligence Unit  to enhance border security through intensifying onslaught against smugglers and money...

NNPC LTD, PARTNER UNLOCK 12,000BPD PRODUCTION FROM AWOBA UNIT FIELD.

Keen on optimising production from the nations hydrocarbon assets to boost revenues and meet the nations OPEC production quota, the Nigerian National Petroleum Company...

MEDIA PARTNERSHIP: DICAN WELCOMES KOREAN, TUNISIAN & ZAMBIAN AMBASSADORS TO NIGERIA 

The Diplomatic Correspondents' Association of Nigeria (DICAN) congratulates Ambassador of the Republic of Korea to Nigeria, Vice-Admiral Kim Pan Kyu, Ambassador Antit Mohsen of Tunisia...

Recent Comments