CBN: We Cleared $7bn Forex Backlogs To Spur Confidence In Economy

The Central Bank of Nigeria, CBN, says it no longer owe forex to any sector of the economy.

The declaration was made on Wednesday by the apex bank in a statement signed by the bank’s Acting Director of Corporate Communications, Sidi Ali.

The magazine reported that since the CBN Governor Yemi Cardoso came to office last July, the government-controlled bank has priotised the payment of legacy forex debts left by the Godwin Emefiele-led CBN.

The total debt stood at $ 7 billion, according to the CBN, which claimed the debt has now been fully settled.

The statement reads in part: “The Central Bank of Nigeria has announced that all valid foreign exchange backlogs have now been settled, fulfilling a key pledge of the CBN Governor, Mr Olayemi Cardoso, to process an inherited backlog of $7bn in claims.

“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.”

Meanwhile, the apex bank has also announced a significant increase in the nation’s external reserves to over $34 billion as of March.

It rose by close to $1 billion, the highest in eight months since the administration of President Bola Ahmed Tinubu came to office in may last year.

Analysts insist that this a good news considering that the rise in forex reserve would go a long way to stabilize the value of the naira whose value to other global currency has been seriously affected   lately.