We Have Cleared Forex Backlogs – CBN Reveals

Nigeria's apex bank, the Central Bank of Nigeria (CBN), has revealed that it has settled all outstanding foreign exchange (FX) obligations.

Acting Director of Corporate Communications, Mrs Sidi Ali, in a statement made available to journalists on Wednesday.

Ali said the financial regulator recently concluded the payment of  obligations to bank customers, effectively settling the residual balance of the FX backlog.

Last month, Yemi Cardoso, CBN governor, said he inherited a $7 billion FX backlog when he assumed office but it has dropped to $2.2 billion.

“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 marketm,” she said.

According to the bank’s spokesperson, at a recent meeting, Cardoso said CBN 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,” she said.

“This encumbrance to market confidence in the country’s ability to meet its obligations is now totally behind us.”