Nigeria’s central bank, the CBN, has taken a major step to ease the lingering foreign exchange (FX) backlog, injecting $500 million into the system.
It comes amid investor anxieties over $7 billion in maturing forex forwards and ongoing pressure on the Naira.
The announcement follows earlier disbursements of $2 billion across key sectors like manufacturing, aviation, and petroleum.
However, with the Naira still under pressure, the $500 million injection’s effectiveness is under scrutiny.
Investors watched closely as maturing forwards strained the economy and devalued the currency.
The CBN’s action aims to alleviate the backlog and stabilize the forex market.
Market participants and stakeholders will watch closely to see how the $500 million fares.
Restoring investor confidence and navigating these challenges are crucial for Africa’s largest economy.
The CBN’s commitment to resolving the FX backlog and addressing currency issues highlights the importance of a robust and responsive financial system in Nigeria.
This move, coupled with earlier efforts, signals the CBN’s commitment to tackling the FX backlog and stabilizing the Naira.