The Central Bank of Nigeria (CBN) reported that it had redeemed outstanding forward liabilities totaling nearly $2 billion over the previous three months.
The top bank added that, in an effort to reduce its remaining debt to the airlines, it has recently paid out about $61.64 million to foreign airlines via a number of banks.
In a statement in Abuja, Mrs. Hakama Sidi Ali, acting director of the CBN’s corporate communications department, stated that the latest action is in line with the organization’s pledge to clear the backlog of unpaid foreign exchange in Deposit Money Banks (DMBs).
Mrs. Ali revealed that the CBN had also redeemed outstanding forward liabilities totaling nearly $2 billion in the previous three months.
“This demonstrates the bank’s dedication to fulfilling outstanding commitments and maintaining a working foreign exchange market,” the spokesperson stated.
She claims that these payments represent the CBN’s continued efforts to settle all outstanding forward transactions in order to lessen the pressure on the nation’s exchange rate.
This move by the CBN is expected to significantly strengthen the value of the Naira relative to other major global currencies and boost investor confidence in the Nigerian economy.
The entire amount of foreign airline funds that are stuck in the nation is estimated by the International Air Transport Association (IATA) to be $800 million. It made threats that some international airlines, whose primary source of income is ticket sales, might be forced to withdraw from the Nigerian market if action was not taken.
According to her, in an effort to relieve pressure on the country’s exchange rate, the CBN is continuing to settle all outstanding forward transactions with these payments.
It is anticipated that the CBN’s action will greatly increase investor confidence in the Nigerian economy and strengthen the value of the Naira in relation to other major world currencies.
The International Air Transport Association (IATA) estimates that there are $800 million in foreign airline funds that are stuck in the country. It threatened to force some foreign airlines, whose main source of revenue is ticket sales, out of the Nigerian market if something was not done.
