CBN successfully clears the entire $7 billion FX backlog as external reserves reach an impressive $34.11 billion.
Abayomi ODUNOWO.
The Central Bank of Nigeria (CBN) has recently made a significant announcement regarding the clearance of a $7 billion foreign exchange (FX) backlog that was inherited by Governor Yemi Cardoso. This move marks a key milestone in the efforts to restore confidence in the Nigerian economy and is a testament to the CBN’s commitment to addressing key challenges in the FX market.
In a statement released by the CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, it was confirmed that all valid FX backlog claims have been settled. The CBN engaged the services of Deloitte Consulting, an independent auditing firm, to meticulously assess the transactions and ensure that only legitimate claims were honored. Any invalid transactions were promptly referred to the relevant authorities for further investigation, demonstrating the CBN’s commitment to transparency and accountability in its operations.
The successful clearance of the FX backlog reflects positively on the CBN’s efforts to address key issues in the foreign exchange market. As a result of this initiative, Nigeria’s external reserves have seen a significant increase, reaching $34.11 billion as of March 7, 2024 – the highest level in eight months. This month-on-month increase can be attributed to a notable rise in remittance payments from Nigerians living abroad and increased foreign investment in local assets, particularly government debt securities.
The recent developments in the FX market are part of a broader strategy outlined during the last Monetary Policy Committee (MPC) meeting. The CBN’s actions reflect a proactive approach to addressing key challenges in the economy and ensuring the stability of the foreign exchange market. By settling the FX backlog and boosting external reserves, the CBN has taken a significant step towards restoring confidence in the Nigerian economy and attracting foreign investment.
The clearance of the FX backlog is a positive development for businesses and individuals who have been affected by the backlog of FX claims. With the settlement of these claims, businesses can now access the foreign exchange they need to import goods and services, facilitate international trade, and meet their financial obligations. This will help stimulate economic growth and create a more favorable business environment in Nigeria.
The rise in external reserves to $34.11 billion is a significant milestone for the Nigerian economy. A strong external reserves position is crucial for a country’s economic stability and resilience against external shocks. The increase in external reserves reflects greater confidence in the Nigerian economy and improved prospects for growth and development. It also signals to investors and stakeholders that Nigeria is open for business and ready to engage with the global economy.
In conclusion, the recent announcement of the clearance of the FX backlog by the CBN and the rise in external reserves to $34.11 billion are positive developments for the Nigerian economy. These actions demonstrate the CBN’s commitment to addressing key challenges in the FX market and promoting economic stability. As the economy continues to recover from the impact of the COVID-19 pandemic, the CBN’s initiatives will play a crucial role in driving growth, attracting investment, and restoring confidence in the Nigerian economy.
Media Contacts
Otunba Abdulfalil Abayomi Odunowo
National Chairman AATSG
URL: www.aatsg.org.ng
Tel: +2349053535322
Email: nchairman@aatsg.org.ng
