CBN Cracks Down on Forex Backlog with Disbursements & Investigations
$2 Billion Boost for Key Sectors:
The Central Bank of Nigeria (CBN) has taken decisive steps to tackle the foreign exchange backlog, injecting around $2 billion into crucial sectors like manufacturing, aviation, and petroleum.
This move aims to ease access to forex for businesses and stimulate economic activity.
Clearing Liabilities:
The CBN hasn’t stopped there. It has successfully settled the outstanding forex liabilities of 14 banks and initiated similar processes with foreign airlines, demonstrating its commitment to resolving long-standing debts.
Forensic Scrutiny and Sanctions:
But it’s not just about immediate solutions.
The CBN has launched an independent forensic review by a respected firm to unearth the root causes of the forex backlog.
Sidi Ali, the CBN spokesperson, acknowledged uncovering “serious infractions, substantial abuse, and notable non-compliance” during the review.
In response, the bank, in collaboration with relevant agencies, will implement appropriate sanctions to deter future irregularities.
Building Trust and Cleaning Up the System:
This decisive action underscores the CBN’s dedication to cleaning up the financial services sector.
Sidi Ali emphasized the bank’s commitment to rebuilding trust among market participants, both domestic and international, in the Nigerian economy.
Continued Commitment to Legitimate Needs:
Despite the challenges, the CBN reiterates its unwavering support for genuine forex demands.
Sidi Ali confirmed that the bank will continue addressing the legitimate backlog, a practice it’s consistently pursued over the past three months.
Transparency in Action:
Recently, the CBN disclosed the disbursement of approximately US $61.64 million to foreign airlines, showcasing its efforts to address specific outstanding liabilities.
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