CBN Resolves $7 Billion Forex Backlog, Boosting Nigeria’s External Reserves to $34.11 Billion

The Central Bank of Nigeria (CBN) has announced the successful clearance of a $7 billion foreign exchange (FX) backlog, which was inherited by Governor Yemi Cardoso.

This achievement fulfills a key pledge made by the Governor and signals a significant step towards restoring confidence in the country’s economy.

The CBN employed Deloitte Consulting, an independent auditing firm, to meticulously assess the transactions and ensure that only legitimate claims were honored.

Any invalid transactions were referred to the relevant authorities for further investigation.

The resolution of the FX backlog has had a positive impact on Nigeria’s external reserves, which reached $34.11 billion as of March 7, 2024, marking the highest level in eight months.

This month-on-month increase is attributed to a notable rise in remittance payments from Nigerians abroad and increased foreign investment in local assets, including government debt securities.

The CBN’s actions are part of a broader strategy outlined during the last Monetary Policy Committee (MPC) meeting.

The clearance of the backlog and the subsequent rise in external reserves are expected to contribute to the stability of the Nigerian economy and improve its attractiveness to foreign investors.

The successful resolution of the $7 billion foreign exchange backlog by the Central Bank of Nigeria represents a significant milestone in the country’s efforts to restore confidence in its economy.

The increase in external reserves, driven by increased remittances and foreign investment, is a positive sign for Nigeria’s economic outlook.

As the CBN continues to implement its broader strategy, it is hoped that the country will experience further economic growth and stability.