Banking

CBN pays foreign airlines $61.64m FX backlog

The Central Bank of Nigeria (CBN) says it has disbursed approximately $61.64 million to foreign airlines through various banks, in fulfilment of its commitment to eliminate the backlog of pending foreign exchange in Deposit Money Banks (DMBs).

This was contained in a statement issued by the Acting Director of the Corporate Communications Department at the CBN, Hakama Sidi Ali, on Friday, January 5, 2024.

Ali, in the statement made available to The Star on Sunday, January 7, said the initiative was part of the CBN’s efforts to decrease its remaining liability to the foreign airlines.

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She disclosed that, in the past three months, the CBN has also redeemed outstanding forward liabilities amounting to about $2 billion, saying this underscores the apex bank’s commitment to the resolution of pending obligations and a functional foreign exchange market.

According to her, these payments signify the CBN’s ongoing efforts to settle all remaining valid forward transactions, with the aim of alleviating the current pressure on the country’s exchange rate.

It is anticipated that this initiative by the CBN should provide a considerable boost to the naira against other major world currencies and further increase investor confidence in the Nigerian economy.

The Star

Segun Ojo

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