CBN clears FX backlog of verified airlines
…As Cardoso pledges to work with stakeholders to boost forex market liquidity
The Central Bank of Nigeria (CBN) has successfully completed the payment of all verified claims to foreign airlines, disbursing an additional $64.44 million to alleviate the backlog of foreign exchange owed.
This move is in line with the CBN’s commitment to resolve the pending foreign exchange obligations that have been a significant concern for airlines operating within the country.
The Acting Director of Corporate Communications at the CBN, Mrs. Hakama Sidi Ali, confirmed the payments in a statement released on Tuesday.
The Central Bank’s efforts to clear the backlog come as a response to the challenges faced by foreign airlines in repatriating their earnings, which had accumulated to billions of dollars.
The recent payment has brought the total amount remitted to the aviation sector to $136.73 million, with Mrs. Sidi Ali confirming that all verified claims by the airlines have now been settled.
This development is expected to restore confidence in the Nigerian foreign exchange market, which has been under pressure, leading to a depreciation of the naira against the US dollar.
The CBN had previously made a $2 billion payment to clear a portion of its matured foreign exchange obligations to Deposit Money Banks. Despite these efforts, the CBN’s forward contract obligations to banks remain substantial, reported at $7 billion.
The Governor of the CBN, Olayemi Cardoso, and his team have expressed their unwavering commitment to addressing the backlog of payments across all sectors.
Mrs Sidi Ali reiterated the CBN’s dedication to working with stakeholders to enhance liquidity in the forex market and mitigate the volatility affecting the naira.
The resolution of the airlines’ backlog is a significant step towards stabilizing the forex market and is anticipated to have positive implications for the aviation industry and the broader Nigerian economy.
The statement reads, “The Governor, Olayemi Cardoso, and his team were doubly committed and would stop at nothing to ensure that the verified backlog of payments across all other sectors was cleared and confidence was restored in the Nigerian foreign exchange market.
“Furthermore, she assured that the CBN was working with stakeholders to ensure liquidity improves within the forex market, thereby reducing pressure on the Naira.
“While expressing optimism that the market would respond positively with the latest injection of over $64 million, she admonished actors in the foreign exchange market to guard against speculation as such actions could hurt the Naira.
“Sidi Ali, therefore, urged the public to support the reforms in the foreign exchange market, adding that the CBN would continue to promote orderliness and professional conduct by all participants in the Nigerian Foreign Exchange Market to ensure market forces determine exchange rates,” the document stated.
