CBN clears $2 billion forex backlogs—including 14 banks liabilities, settlements with foreign airlines

Mrs Sidi Ali, the CBN Acting Director of Communication, revealed this in an official statement in Abuja on Wednesday amidst the Nigeria’s forex market crisis, the recent Naira devaluation, and its $7 billion backlog of outstanding foreign exchange liabilities. (CBN clears $2 billion forex backlogs)

The CBN, however, has promised to pay its $7 billion matured forex forwards liability in order to encourage a more confident and business-friendly environment for investors in the forex market. CBN clears  $2 billion forex 

According to the CBN Acting Director of Communication, Mrs Sidi Ali, the apex bank has approved an independent forensic review to be conducted by a qualified agent company into the activities of the forex market players to resolve the issues of forex exchange manipulations and rates instability.

She said, “The review revealed grave infractions, gross abuse, and significant non-compliance with market regulations, and appropriate sanctions would be enforced in collaboration with relevant agencies.” CBN clears $2 billion forex

Sidi reiterated that the Central Bank of Nigeria, as the apex bank—will continue to ensure that all foreign exchange backlogs are frequently settled just as it has been doing this since a few months ago.

Note: The CBN previously cleared some foreign exchange backlogs three months ago.

The major problem of the Naira has always remained inadequate supply of Foreign exchange reserves arising from declining crude oil mining and its export product sales. (CBN clears  $2 billion forex 

Crude oil export products account for more than 90 percent of Nigeria’s dollar inflows,that is—Oil alone remains Nigeria’s major export means. It has to settle all foreign debts and liabilities from the one source dollar inflow.

However, even the few realised petrodollars from Oil sales are poorly allocated to the right sectors as politicians divert the lion share of the proceeds for their personal luxurious expenses and foreign trips— hence this continues to widen the foreign currency shortage gap year after year calling for further Naira devaluation amidst the gruelling hardship faced by its citizens. CBN clears $2 billion forex

“The Central Bank of Nigeria, in its bid to clear the backlog of outstanding foreign exchange liabilities, has paid approximately $2 billion across various sectors, including manufacturing, aviation, and petroleum,” read Mrs Sidi’s statement.

“The Central Bank has also cleared up the entire liability of 14 banks and started settlements with foreign airlines. CBN clears $2 billion forex

“Nevertheless, the CBN will continue to settle the legitimate foreign exchange backlog as it has consistently been doing in the last three months,” part of the statement also revealed.