CBN injects fresh $500m into forex market

The Central Bank of Nigeria (CBN) has committed $500 million into the forex market.

Hakama Sidi-Ali, Acting Director of the Corporate Communications Department at the CBN, disclosed this in a statement on Monday.

Sidi-Ali reiterated the bank’s commitment to “settling all legitimate foreign exchange backlogs within a short time frame.”

She 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.

According to her, 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,” she said.

The forex market reforms, she explained, are designed to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities.

She expressed confidence that a stable exchange rate would boost investor confidence and attract foreign investment.

She 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.

“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,” she said.

Earlier, the apex bank had infused nearly $2 billion to satisfy outstanding commitments in the manufacturing, aviation, and petroleum sectors.