CBN Set To Commence Payment Of Forex Backlogs, Gives Update on Verification
- The Central Bank of Nigeria (CBN) Governor has announced that the bank is set to commence payment of FX backlogs
- The apex bank also released a new update on the progress of the forensic verification process
- CBN Governor Cardoso noted that the EFEMS has helped the naira appreciate in the last month, and announced plans to stabilise FX further
Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.
The Central Bank of Nigeria has announced plans to commence payment of all foreign exchange backlogs, as the forensic verification has been completed.
CBN Governor, Mr Olayemi Cardoso made this announcement at the launch of the Foreign Exchange (FX) code.
Olayemi noted that the verification for the $7 billion backlog has stretched for over 12 months.
Source: UGC
Recall that CBN cleared over $850 million forex backlog owed to European airlines, a move which helped the investor repatriate profits and reduce airline fares.
CBN ending FX irregularities
Cardoso stated that the bank had brought an end to the era of multiple exchange rates, which favoured a select few.
He stressed that the Foreign Exchange Code exists to promote ethical conduct among dealers in the FX market, and warned that deposit money banks that violate the foreign exchange code will face sanctions, Channels TV reports.
Speaking on the Electronic Foreign Exchange Matching System launched in December last year, Mr Cardoso assured that the intervention has improved market transparency and efficiency.
The positive results of the initiative are seen in the naira appreciating from N1,663 to one dollar in December 2024 to N1,536 as of January 27, 2025.
The CBN boss noted that the bank is committed to ensuring the stability of the Foreign exchange.
The Central Bank governor also what he described as an era of excessive and unconventional financing methods using the Ways and Means, which negatively affected the economy, resulting in high inflation and currency depreciation.
CBN Grants BDCs waiver for 2025
The CBN has also waived License Renewal fees for all Bureau De Change (BDC) operators in 2025. This announcement came as the CBN released updated guidelines for BDC operations.
The apex bank is also making concerted efforts to improve oversight and compliance among BDC operators, even as it tries to stabilize the FX market.
The deadline for recapitalisation of BDC operators was also extended to June 3, 2025 to give more operators room to meet up.
CBN gives deadline for compliance to FX Code
In related news, the Apex bank also announced a deadline for the forex market players to provide their compliance reports to the new Foreign Exchange (FX) code.
The FX code includes best practices to enhance market transparency, governance, and moral behaviour among players in Nigeria's FX market. It is aimed at boosting a just and open FX market, in the interest of Nigerians.
By the new deadline, all participants must submit their compliance reports before the end of January 31, 2025.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
