Connect with us

Hi, what are you looking for?

E-Financial

CBN begins clearing Forex backlog owed to banks

CBN

Central Bank of Nigeria (CBN) has delivered over 75 percent to 80 percent of outstanding matured FX forwards in banks.

Isah Abdulmumin, spokesperson of the Central Bank of Nigeria, CBN, on Thursday, said it has started clearing outstanding foreign currency forwards owed to banks, with banking sources saying an initial payment of $1 billion had been made.

“The CBN has started paying the FX backlogs to banks. So far, 14 banks have been paid,” Isah Abdulmumin told Reuters but declined to give the amount or name the banks.

According to BusinessDay, a source said only international banks have been settled, which include Citi Bank, Standard Chartered and Stanbic IBTC.

While a few of the lenders were paid the entire amount owed, others got as much as 80% of the backlog, sources told Vanguard.

Nigeria has nearly $7 billion in forex forwards that have matured, which corporations bought from local banks. Banks then repaid foreign credit lines with their own funds when the central bank did not pay out.

The Central Bank’s payments follow Finance Minister Wale Edun’s Oct. 23 announcement that Nigeria was expecting $10 billion of inflows to improve foreign exchange market liquidity.

It will come as a relief to local lenders, who have been struggling to meet demands from customers due to chronic dollar shortages in Africa’s largest economy.

New Central Bank Governor Yemi Cardoso has said clearing the backlog was a priority but gave no timeline for how long it would take.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

ad

You May Also Like

News

In a bid to unleash Africa’s tech potential and foster a thriving tech ecosystem that drives innovation and sustainable growth, Moniepoint Inc, Africa’s leading...

Tech

The South African Weather Service (SAWS) has confirmed that it was targeted by cybercriminals twice within two days, with the second attack causing a...

News

Moneipoint has denied reports that Moniepoint MFB, its microfinance bank, was hacked and some N1.1 billion allegedly stolen. Moniepoint, in a blog post said...

Tech

US tech giant Nvidia saw its stock plummet nearly 17% on Monday, leading a sell-off across AI-related stocks after the Chinese AI chatbot DeepSeek...