The Governor of the Central Bank, Olayemi Cardoso, has disclosed that the forensic verification process to resolve all outstanding foreign exchange backlogs has been completed, and payments will begin shortly.
During the launch of the foreign exchange code, Cardoso expressed his disappointment that it took the bank over twelve months to clear a $7 billion foreign exchange backlog in 2024.
In March of last year, the Central Bank of Nigeria (CBN) announced the clearance of the backlog, effectively eliminating a longstanding issue.
Cardoso stated that the era of multiple exchange rates, which favored a select few, is over. He emphasized that all deposit money banks that violate the ethics of the foreign exchange code will face sanctions.
Additionally, Cardoso criticized the period of unprecedented financing methods, which he argued had a negative impact on the economy, resulting in high inflation rates 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.
