CBN SET TO COMMENCE PAYMENT OF FOREX BACKLOG

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The Governor of the Central Bank, Olayemi Cardoso has announced that forensic verification to clear all pending foreign exchange backlogs is now completed and payments will commence soon.

Speaking during the launch of the foreign exchange code, Cardoso lamented how it took the bank over twelve months to clear the $7 billion foreign exchange backlog in 2024.

In March last year, the CBN announced clearance of the backlog, effectively eliminating a legacy burden.

The apex bank boss said the era of multiple exchange rates which accorded privileges to a select few is gone, adding that all deposit money banks that flout the ethics of the foreign exchange code will face sanctions.

Cardoso also criticised what he described as the era of unprecedented ways and means of financing which impacted negatively on the economy, leading to high inflation rate and currency depreciation.

The Foreign Exchange Code is a guideline for the banking industry to promote ethical conduct among dealers in the Nigerian foreign exchange market.

On the Electronic foreign exchange matching system launched in December 2024, the central bank governor assured that the intervention has led to improved market transparency and efficiency, with the naira appreciating from N1,663 to one dollar as of December 2024 to 1,536 as of 27th of January 2025.

While reiterating the bank’s commitment to exchange rate stability, he said the nation’s external reserve grew to $40.7 billion as of December 2024.