The Central Bank of Nigeria (CBN) has cleared all valid foreign exchange backlogs, News About Nigeria reports.
The CBN Governor, Mr. Olayemi Cardoso, had committed to addressing an inherited backlog of $7 billion in claims.
The announcement was made by the bank’s acting director of corporate communications, Mrs. Sidi Ali, in a statement released to journalists on Wednesday.
Ali said that meticulous efforts were undertaken to settle these outstanding transactions.
The CBN’s success in clearing the FX backlog was followed by an increase in external reserves, rising by $993 million to $34.11 billion as of March 7, 2024, the highest level in eight months.
This increase was attributed to a surge in remittance payments by Nigerians overseas and higher purchases of local assets, including government debt securities, by foreign investors.
Notably, the CBN recently completed the payment of $1.5 billion, resolving obligations to bank customers and clearing the residual balance of the FX backlog.
The apex bank noted that independent auditors from Deloitte Consulting meticulously assessed each transaction and only legitimate claims were honoured.
It added that any invalid transactions were promptly flagged for further scrutiny by relevant authorities.
“Clearance of the foreign exchange transaction 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,” the statement partly read.
