CBN to settle outstanding forward contract debts in two weeks
The Acting Governor of the Central Bank of Nigeria, Folashodun Shonubi, has announced that the bank will repay all outstanding forward contract debts owed to banks within the next one to two weeks.
While the total amount of the debts was not disclosed, a recent report by JPMorgan estimated the outstanding dollar debts owed by the CBN to be $6.84 billion.
Shonubi dismissed the JPMorgan report and stated that the apex bank had been in discussions with banks regarding the repayment of the forward contract debts, which will be settled within the next one to two weeks.
He also clarified that there is no outstanding $7 billion debt as claimed by JPMorgan, and that it was merely their opinion that was published.
Shonubi, who spoke in Lagos, said, “There is no outstanding $7billion as claimed by JP Morgan. It was just their opinion that was put on paper, and many people jumped on it
“In response to questions about the backlogs, the banks have been working with the CBN on various structures to clear them. So, what happens is that at maturity, they make the foreign exchange available to those that need it.
“We are discussing with them so we can structure their own. So, we are working towards clearing them in the next one or two weeks. It is something we have been discussing for a while.”
The Central Bank of Nigeria (CBN) has announced that it is investigating a Bureau De Change operator, Crown Agent, for illegally bringing foreign exchange into the country and selling it to Nigerians.
The CBN Governor has vowed to take action against all BDC operators involved in such activities. The apex bank is working with international agencies to identify those who bypass the normal system and sell foreign exchange to Nigerian companies.
The CBN Governor also reiterated the bank’s commitment to stabilising the forex rate and stated that the bank’s intervention goes beyond regulatory oversight.
Despite contributing less than 25 per cent of the market volume, the CBN continues to intervene in the market to ensure rate stability and manage the flow of foreign exchange.
