Central Bank of Nigeria has injected another $500 million into the nation’s forex market.
CBN Acting Director of the Corporate Communications, Hakama Sidi-Ali, disclosed this in a statement on Monday.
The statement reiterated the apex bank’s commitment to “settling all legitimate foreign exchange backlogs within a short time frame.”
It also assured Nigerians that the CBN was implementing a comprehensive strategy to improve liquidity in the Nigerian foreign exchange markets in the short, medium, and long term.
The apex bank had earlier infused nearly $2 billion to satisfy outstanding commitments in the manufacturing, aviation, and petroleum sectors.
The statement further said that this strategy is focused on addressing fundamental issues that have hindered the effective operation of the Nigerian forex markets over the years.
“As the governor said, the CBN’s focus is on addressing fundamental issues that have hindered the effective operation of the Nigerian FX markets over the years,” the statement said.
It added that the forex market reforms are designed to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities.
The CBN expressed confidence that a stable exchange rate would boost investor confidence and attract foreign investment.
It urged all participants in the forex market to play by the rules, emphasizing that transparency in the market would enable the fair determination of exchange rates and, by extension, guarantee stability for businesses and individuals alike.
The statement further read, “We believe that a stable exchange rate will boost investor confidence and attract foreign investment.
“We urge all participants in the market to play by the rules. Transparency in the market will enable the fair determination of exchange rates and, by extension, guarantee stability for businesses and individuals alike.”