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Economy: How CBN clears all backlog of airlines’ Forex claims –Official

*The Central Bank of Nigeria affirms its Governor, Dr. Olayemi Cardoso and his team are Governor Olayemi Cardoso and his team are ‘doubly committed’ to clearing the entire backlog and restoring confidence in the country’s aviation market

Isola Moses | ConsumerConnect

The Central Bank of Nigeria (CBN) has announced the completion of settlement of Foreign Exchange (Forex) debts owed all foreign airlines operating in the West African country.

ConsumerConnect reports the CBN’s payment of the final tranche of $64.44 million brings the total disbursements to the affected international airlines to $136.73 million, effectively clearing all verified claims within the aviation sector.

Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at CBN, also affirmed this development in a statement issued Tuesday, January 30, 2024.

The Bankers’ Bank stated: “The Central Bank of Nigeria, fulfilling its pledge to clear the backlog of foreign exchange owed foreign airlines in the country, has concluded the payment of all verified claims by airlines with an additional $64.44 million to the concerned airline.”

It is noted that the Bank’s settlement of all outstanding Forex claims to the airlines underlines the CBN’s commitment to resolving Foreign Exchange obligations across all sectors of the Nigerian economy.

The Acting Director of Corporate Communications further said CBN Governor Olayemi Cardoso and his team are “doubly committed” to clearing the entire backlog and restoring confidence in the market.

Aside from settling existing debts, the banking sector regulator as wellis actively working with stakeholders to enhance liquidity within the Forex market, aiming to alleviate pressure on the Naira and tackle inflation in the economy.

Ali expressed optimism that the latest injection of $64 million would positively impact the market.

The Bank, nonetheless, cautioned against speculative practices, and urged particularly Forex market participants to maintain responsible behaviour.

The statement also noted: “While expressing optimism that the market would respond positively with the latest injection of over $64 million, she admonished actors in the foreign exchange market to guard against speculation as such actions could hurt the Naira.”

Meanwhile, in order to sustain long-term market stability, the CBN seeks public support for its Foreign Exchange market reforms.

The Acting Director urged Nigerian consumers to supports the banking regulator’s ongoing efforts.

Mrs. Ali stressed the Bank’s dedication to promoting orderliness and professional conduct.

According to her, this will allow market forces to determine exchange rates naturally, leading to a more sustainable and efficient system.

The tensions with the Emirates stand as a stark reminder of the broader challenges at play in the Nigerian economy.

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