CBN Boosts Forex Market with $500 Million Injection

The Central Bank of Nigeria (CBN) has infused an additional $500 million into the foreign exchange market to tackle the persistent backlog of confirmed forex transactions. This revelation was made by Mrs. Hakama Sidi Ali, Acting Director of the Corporate Communications Department at the CBN, during a press briefing held in Abuja on Monday, January 29. Mrs. Sidi Ali underscored the commitment of the central bank, stating, “The Management of the CBN is resolute in clearing all legitimate foreign exchange backlogs within a short time frame.” She assured the public that the CBN is executing a comprehensive strategy designed to enhance liquidity in the Nigerian foreign exchange markets across short, medium, and long-term horizons. The strategy, as explained by Sidi Ali, is laser-focused on addressing longstanding issues that have hindered the efficient operation of the Nigerian forex markets. Key components include streamlining and unifying multiple exchange rates, promoting transparency, and reducing arbitrage opportunities. The governor emphasized on resolving fundamental issues, Sidi Ali stated, “The CBN’s focus is squarely on addressing the underlying challenges that have impeded the effective operation of the Nigerian FX markets over the years.” She expressed confidence that achieving a stable exchange rate would not only boost investor confidence but also attract foreign investment. “We believe that a stable exchange rate will bolster investor confidence and attract foreign investment,” she remarked. Sidi Ali urged all participants in the forex market to abide by the rules, emphasizing that transparency would facilitate a fair determination of exchange rates, ensuring stability for businesses and individuals alike. This $500 million injection by the CBN is the latest in a series of measures implemented in recent months, underscoring the central bank’s ongoing commitment to addressing the forex backlog and maintaining stability in the forex market.

Consumer shopping, hospitality, boost UK economy

The UK economy bounced back in April after it was boosted by stronger consumer spending in shopping and hospitality. UK gross domestic product (GDP) increased by 0.2 percent for the month after a 0.3 percent fall in March, the Office for National Statistics (ONS) revealed. The latest figure was in line with forecasts for the month from economists. ONS director of economic statistics Darren Morgan said: “GDP bounced back after a weak March. “Bars and pubs had a comparatively strong April, while car sales rebounded and education partially recovered from the effect of the previous month’s strikes. “These were partially offset by falls in health, which was affected by the junior doctors’ strikes, along with falls in computer manufacturing and the often-erratic pharmaceuticals industry. “House-builders and estate agents also had a poor month.”