The Central Bank of Nigeria (CBN), has injected a substantial sum of $500 million into the forex market. The Acting Director of the Corporate Communications Department at the CBN, Hakama Sidi-Ali, made this announcement in a statement on Monday.
Sidi-Ali emphasized the CBN’s dedication to promptly addressing all legitimate foreign exchange backlogs. The statement also reassured Nigerians that the central bank is actively implementing a comprehensive strategy to enhance liquidity in the Nigerian foreign exchange markets across short, medium, and long-term periods.
According to Sidi-Ali, this strategy is specifically designed to tackle fundamental issues that have historically impeded the effective operation of the Nigerian forex markets.
She quoted the governor, stating that the focus of the CBN is on addressing these fundamental challenges.
The ongoing forex market reforms aim to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities. Sidi-Ali expressed confidence that a stable exchange rate resulting from these reforms would bolster investor confidence and attract foreign investment.
Furthermore, she urged all participants in the forex market to adhere to rules and regulations, emphasizing that transparency is crucial for the fair determination of exchange rates. This, in turn, would contribute to stability for both businesses and individuals operating in the market.
In an earlier initiative, the CBN had injected nearly $2 billion to fulfill outstanding commitments in critical sectors such as manufacturing, aviation, and petroleum. The recent $500 million injection reaffirms the central bank’s commitment to addressing forex challenges and fostering a more stable and transparent market environment.
