CBN Disburses $61.64Mn to Foreign Airlines to Reduce FX Backlog
By Patience Ikpeme
In its resolve to clear the backlog of pending matured foreign exchange in Deposit Money Banks (DMBs), the Central Bank of Nigeria (CBN) has disbursed US$61.64 million to foreign airlines through various banks.
This move is part of the CBN’s strategy to reduce its liability to the airlines, ensuring a more stable foreign exchange market.
The Acting Director of the Corporate Communications Department at the CBN, Mrs. Hakama Sidi Ali, confirmed this development in Abuja.
According to her, this timely injection of funds is expected to ease pressures on the country’s exchange rate and boost investor confidence in the Nigerian economy.
Mrs. Sidi Ali went on to reveal that over the past three months, the CBN has successfully settled outstanding forward contracts, redeeming a total of nearly US$2 billion.
This approach highlights the CBN’s dedication to resolving pending obligations and maintaining a functional foreign exchange market.
The disbursement of funds to foreign airlines represents the CBN’s ongoing effort to settle all remaining valid forward transactions, aiming to ease the current pressure on Nigeria’s exchange rate.
By fulfilling its obligations in a timely manner, the CBN hopes to restore stability and confidence in the currency market.
This initiative is expected to have a significant positive impact on the Naira’s value against other major world currencies. A strengthened Naira will not only benefit the aviation sector by providing much-needed liquidity to foreign airlines but will also increase investor confidence in the Nigerian economy.
A stable and favorable exchange rate is essential for attracting foreign investments and supporting economic growth.
In addition, by addressing the FX backlog and consistently resolving outstanding obligations, the CBN is demonstrating its commitment to maintaining a transparent and functional foreign exchange market.
This approach is likely to enhance the country’s economic prospects and foster a favorable environment for both domestic and international businesses.
Moving forward, it is anticipated that the CBN will continue to implement measures aimed at improving the Nigerian economy, ensuring efficient foreign exchange management, and attracting investment.
The disbursement of funds to foreign airlines is a significant step in the right direction, and with continued efforts, it is hoped that the nation’s exchange rate stability and investor confidence will further strengthen.
