In a move intended to send the Naira soaring, the Central Bank of Nigeria (CBN) has injected approximately US $61.64 million into the hands of foreign airlines operating in the country.
This targeted disbursement aimed at clearing a portion of the backlog of matured foreign exchange obligations owed to the airlines, marks a significant step towards stabilizing the country’s forex market and boosting investor confidence.
The Acting Director of CBN’s Corporate Communications Department, Mrs. Hakama Sidi Ali who confirmed this development, described it as a welcome relief to foreign airlines grappling with delayed forex access.
This latest disbursement forms part of the CBN’s broader commitment to settling all outstanding valid forward transactions, as Mrs Sidi Ali emphasised.
The CBN’s commitment extends beyond just the airlines. In the past three months alone, the Apex Bank has redeemed a staggering US$2 billion in outstanding forward liabilities, to show its dedication to resolving pending obligations and fostering a functional foreign exchange market.
These measures are expected to have a ripple effect by alleviating the current pressure on the Naira’s exchange rate, as well as enable a considerable strengthening of the Naira against major world currencies as a result of the CBN’s intervention.
The CBN believes that this is likely to bolster investor confidence in the Nigerian economy, paving the way for increased investment and economic growth.
According to Hakama Sidi-Ali, “These payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, with the aim of alleviating the current pressure on the country’s exchange rate.
“It is anticipated that this initiative by the CBN should provide a considerable boost to the Naira against other major world currencies and further increase investor confidence in the Nigeria economy.”