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

According to the source who told BusinessDay, only international banks have been settled which include Citi Bank, Standard Chartered and Stanbic IBTC.
“We have being directed to inform you that CBN has cleared all outstanding matured forwards forex,” a note from Citigroup showed. A top source in Nigeria’s apex bank confirmed the development to BusinessDay.

“I can confirm the backlog in 14 banks have been cleared. Don’t quote me as I don’t have the details yet,” source said.

SocialJustice:
People who bought dollar above N1k to hoard are about to lose massively.

SoNature:
I hope they aren't borrowing it or emptying Nigeria's foreign reserves to clear the backlog.

SoNature:
I hope they aren't borrowing it or emptying Nigeria's foreign reserves to clear the backlog. Nigeria is struggling with FX, but the president plans to splash millions of dollars buying a yacht.

michlins:
anything to clear the backlog is a welcome development. You wouldn't know what it does to international trade and as an import dependent country,ná war!!!

SoNature:
I hope they aren't borrowing it or emptying Nigeria's foreign reserves to clear the backlog. Nigeria is struggling with FX, but the president plans to splash millions of dollars buying a yacht.

SoNature:
I hope they aren't borrowing it or emptying Nigeria's foreign reserves to clear the backlog. Nigeria is struggling with FX, but the president plans to splash millions of dollars buying a yacht.

SoNature:
I hope they aren't borrowing it or emptying Nigeria's foreign reserves to clear the backlog. Nigeria is struggling with FX, but the president plans to splash millions of dollars buying a yacht.

SoNature:
I hope they aren't borrowing it or emptying Nigeria's foreign reserves to clear the backlog. Nigeria is struggling with FX, but the president plans to splash millions of dollars buying a yacht.

SocialJustice:
People who bought dollar above N1k to hoard are about to lose massively.

Khyrvxjzy:



you no insult yoruba ni?

CodeTemplar:
the foreign reserve has its job which I believe is to make forex available.

As long they don't touch more than 10-12%.

SoNature:


Every competent government works hard to grow its foreign reserves, not spend from it. If former presidents who came before Tinubu started spending that money, what would have Tinubu met?

Oops! I guess he didn't promise Nigerians anything; he's only enjoying his turn and has hired tons of online scallywags to defend his rascality.

SoNature:


Every competent government works hard to grow its foreign reserves, not spend from it. If former presidents who came before Tinubu started spending that money, what would have Tinubu met?

Oops! I guess he didn't promise Nigerians anything; he's only enjoying his turn and has hired tons of online scallywags to defend his rascality.

SoNature:
I hope they aren't borrowing it or emptying Nigeria's foreign reserves to clear the backlog. Nigeria is struggling with FX, but the president plans to splash millions of dollars buying a yacht.

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

According to the source who told BusinessDay, only international banks have been settled which include Citi Bank, Standard Chartered and Stanbic IBTC.
“We have being directed to inform you that CBN has cleared all outstanding matured forwards forex,” a note from Citigroup showed. A top source in Nigeria’s apex bank confirmed the development to BusinessDay.

“I can confirm the backlog in 14 banks have been cleared. Don’t quote me as I don’t have the details yet,” source said.

More details later….

https://businessday.ng/news/article/relief-for-nigeria-as-cbn-begins-to-clear-fx-backlog/

LordAdam16:


They leaked to the press that they'd receive funds this week from foreign lenders and start clearing the backlog.
They made this inaccurate disclosure because they had to stem the drop in the parallel market.

If this week had ended without any action on the backlog, it'd have led to a surge next week.
That's why they're tapping into the reserves.
Preliminary reports state they took out $1B.

I guess they'll stagger it every two weeks or thereabout until they receive the funds which they'll then use to plug the leaking reserve.
Meanwhile the downward pressure on rates will hold.
Ensuring a near-term band of 900-1100.

All of this is contingent on those funds coming in before the end of the year.
If they don't, we'd have a negative net reserve and rates will crash with a vengeance.
It'd have been great if the Dangote Refinery had commenced gasoline refining.
But while it may yet kick off before the end of the year. It'll take a while to ramp up.
Most of our crude is earmarked for export to secure prized $.

The CBN is trying to restore belief and confidence in their capacity to meet institutional obligations.
To that end, this is helpful.

-Lord

Ikaeniyan0:
This should have a positive effect on the naira. I pity Nigerians who bought dollars above 1k.

Yourprick:



https://businessday.ng/news/article/relief-for-nigeria-as-cbn-begins-to-clear-fx-backlog/

SocialJustice:
People who bought dollar above N1k to hoard are about to lose massively.

SoNature:
I hope they aren't borrowing it or emptying Nigeria's foreign reserves to clear the backlog. Nigeria is struggling with FX, but the president plans to splash millions of dollars buying a yacht.

optimusprime2:
At this rate...

By January 1usd may equal 2000NGN

You can't tell me that this clearance is not made from foreign reserves... in the midst of all the debt.