Business
CBN Clears $7bn Valid FX Backlog
The Central Bank of Nigeria (CBN) has achieved a significant milestone by settling all valid foreign exchange backlogs amounting to $7 billion, fulfilling a crucial promise made by Governor Olayemi Cardosoo.
Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, confirmed this achievement in Abuja on Wednesday, highlighting the meticulous assessment conducted by independent auditors from Deloitte Consulting to ensure the legitimate claims were honored.
In a bid to bolster economic credibility and confidence, the CBN recently completed a $1.5 billion payment to meet obligations to bank customers, effectively eradicating the residual balance of the FX backlog.
Governor Cardoso emphasized the strategic importance of prioritizing the clearance of the FX backlog during a recent meeting, signaling a positive step towards restoring faith in the Nigerian economy.
He said “We made clearing the FX backlog a priority to restore credibility and confidence in the Nigerian economy. It was important that we go through an independent and credible process that would determine the authenticity of those obligations, and, at this point, I can tell you that we have now cleared all genuine, verifiable transactions.
“This encumbrance to market confidence in the country’s ability to meet its obligations is now totally behind us.”
The recent clearance of the foreign exchange transactions backlog aligns with the comprehensive strategy outlined during last month’s Monetary Policy Committee (MPC) meeting, aimed at stabilizing the exchange rate to mitigate imported inflation and enhance confidence in the banking system and the economy.
Governor Cardoso leveraged the MPC meeting and subsequent conference calls with foreign portfolio investors to articulate expectations for sustained growth in Nigeria’s foreign currency reserves and enhanced liquidity in the foreign exchange market.
The CBN further reported a substantial surge in external reserves, surging by $993 million to reach $34.11 billion as of March 7, 2024, marking the highest level attained in eight months.
The notable month-on-month increase in external reserves was propelled by a significant uptick in remittance payments from Nigerians abroad, coupled with increased acquisitions of local assets, particularly government debt securities, by foreign investors.
The Nigerian Economic Summit Group (NESG) has projected that the country has the potential to achieve a 5.5% growth in Gross Domestic Product (GDP) if critical policy reforms are sustained.
This was disclosed on Thursday during the launch of the NESG’s 2025 Macroeconomic Outlook report.
Speaking at the event, the Chief Economist and Director of Research & Development at NESG, Dr. Olusegun Omisakin, highlighted the need for more efficient policy implementation to unlock Nigeria’s economic potential.
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“We believe at the optimal level, if we embark on more efficient policy reforms, the Nigerian economy has the potential, the GDP to end up at 5.5 per cent, and we believe that this is achievable,” Omisakin stated.
More to follow……….
The Central Bank of Nigeria (CBN) has announced the release of the Nigerian Foreign Exchange (FX) Code, a set of guidelines designed to promote ethical conduct among authorized dealers in the country’s FX market.
In a statement, the apex bank disclosed that the official launch of the Code would take place on Tuesday, January 28, 2025, at the CBN Head Office Auditorium in Abuja.
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“The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote the ethical conduct of authorised dealers in the Nigerian Foreign Exchange Market,” the statement read.
The introduction of the FX Code is expected to enhance transparency, accountability, and professionalism within Nigeria’s foreign exchange ecosystem, aligning it with global best practices.
The event is anticipated to attract key stakeholders in the financial and banking sectors, as well as representatives from authorized FX-dealing institutions across the country.
The 47th President of the United States, Donald Trump attracted up 3 trillion dollars in investments into the country’s economy in his first full day at work.
This was gleaned from the verified handle of the POTUS on micro-blogging site, X, on Wednesday.
Biztellers reports that the POTUS is focused ensuring at least $1 trillion investment daily for the first seven days of his return to the White House, which would be driven by key clearly identified areas, including artificial intelligence.
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President Trump wrote, “In total, before the end of my first full business day in Washington and the White House, we’ve already secured nearly $3 trillion of new investments in the United States.
“And probably, that’s going to be six or seven by the end of the week.”
In a short video clip accompanying the statement, President Trump assured that the surge in investments would likely hit $7 trillion within his first seven days as the 47th POTUS.
He highlighted that artificial intelligence had proven to be an area lots of willing entrepreneurs had shown much appetite for.
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Saul Mccoy
March 21, 2024 at 12:29 pm
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