CBN Injects $500M into FX Market

Confidence UbaniJanuary 30, 20241 Mins read612

The Central Bank of Nigeria (CBN) has recently injected an additional $500 million into the foreign exchange market, following a previous disbursement of around $2 billion across key sectors including manufacturing, aviation, and petroleum.

This move is part of the CBN’s ongoing effort to address the backlog of verified foreign exchange transactions and improve market liquidity.

Hakama Ali, the Acting Director of the Corporate Communications Department at the CBN, emphasised the bank’s commitment to settling all legitimate FX backlogs promptly. “As the Governor said, the CBN’s focus is on addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years,” she said.

She further outlined the CBN’s comprehensive strategy, focusing on short, medium, and long-term improvements in the Nigerian foreign exchange markets.

The CBN’s initiatives aim to tackle fundamental issues that have long hampered the efficiency of the FX markets. Key aspects of these reforms include streamlining and unifying exchange rates, fostering transparency, and minimising opportunities for arbitrage.

Ali expressed confidence that these measures, by ensuring a stable exchange rate, would bolster investor trust and encourage foreign investment. She also called on everyone to comply with the regulations, stressing that market transparency is crucial for fair exchange rate determination and maintaining overall stability for businesses and individuals.