CBN clears $7bn Forex backlog, external reserves rise to $34.11bn

CBN clears $7bn Forex backlog, external reserves rise to $34.11bn

The Central Bank of Nigeria (CBN) says it has cleared a total of $7 billion foreign exchange backlog to banks.

It stated this via a statement on Wednesday by its Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali.

She said it was “fulfilling a key pledge of the CBN Governor, Mr. Olayemi Cardoso, to process an inherited backlog of US$7 billion in claims.”

Sidi Ali noted that the CBN recently concluded the payment of $1.5 billion to settle obligations to bank customers, effectively settling the residual balance of the FX backlog.

She said the CBN engaged Deloitte Consulting, an independent auditing firm, to assess meticulously the transactions, ensuring that only legitimate claims were honoured.

“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,” she stated.

Sidi Ali also said, “Any invalid transactions were referred to the relevant authorities for further investigation.”

This development came as the external reserves witnessed a rise, reaching $34.11 billion as of March 7, 2024, the highest level in eight months.