The Acting Governor of the Central Bank of Nigeria, Folashodun Shonubi, announced that the apex bank will settle all outstanding forward contract debts with banks within the next one to two weeks.
While the exact total of these dollar debts was not disclosed, a recent report by JPMorgan, a U.S.-based bank, estimated the CBN’s forward contract debt at $6.84 billion.
Shonubi, the acting CBN governor, dismissed the JPMorgan report, emphasizing that there was no outstanding $7 billion as claimed.
He explained that discussions with banks had been ongoing for some time, and they were actively working on repaying these forward contract debts in the coming weeks.
Furthermore, Shonubi revealed that the CBN was investigating Crown Agent, a Bureau De Change operator, for illegally bringing forex into the country and selling it to Nigerians below the official rate.
He vowed to take action against all erring BDC operators, with international agencies involved in the investigations.
Despite contributing less than 25 percent of the market volume, the CBN remains committed to stabilizing exchange rates.
Shonubi clarified that the CBN’s intervention aims to ensure rate stability and manage the flow of foreign exchange effectively, ensuring a balanced supply to the financial sector.
In summary, the CBN is actively addressing outstanding forward contract debts, investigating illegal forex activities, and maintaining its role in stabilizing exchange rates, emphasizing its commitment to the financial sector’s stability.
