The recent announcement by the Central Bank of Nigeria (CBN) regarding the disbursement of foreign currency transactions is generating great interest in the country. According to a statement issued by the Acting Director of Corporate Communications, Ms. Hakama Sidi-Ali, the CBN is committed to eliminating backlogs of foreign currency transactions in commercial banks.
The move is part of the CBN’s efforts to reduce its remaining liabilities to airlines. Over the past three months, the CBN has also repurchased forward receivables worth close to two billion dollars.
This action demonstrates the CBN’s commitment to settle all outstanding valid forward transactions, in a bid to alleviate the current pressure on the country’s exchange rate. This initiative is expected to provide considerable support to the naira against other major global currencies and boost investor confidence in the Nigerian economy.
This decision is all the more important as foreign airlines had reported a total amount blocked in the country of around $800 million. Faced with this situation, the International Air Transport Association (IATA) had even threatened certain foreign airlines with withdrawal from the Nigerian market if nothing was done to recover these funds, mainly from airline ticket revenues.
The disbursement of foreign currency transactions by the CBN is therefore a concrete response to this situation and further evidence of the Nigerian government’s commitment to addressing the problems in the foreign exchange market. This action is expected to have positive repercussions on the economy, strengthening the stability of the exchange rate and attracting more foreign investors.
In conclusion, the disbursement of foreign exchange transactions by the CBN is an important step towards resolving the problems associated with the foreign exchange market in Nigeria. This initiative is expected to help support the value of the naira, boost investor confidence and boost the country’s economy.