The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has revealed that a recent audit has uncovered $2.4 billion in invalid foreign exchange (forex) claims from a total backlog of $7 billion in the country.
In an interview with Arise News Channel, Cardoso discussed the findings of the audit and the actions being taken by the CBN.
Cardoso emphasized that the apex bank will only honor valid transactions, which amount to $4.6 billion. He disclosed that approximately $2.3 billion of the valid claims have already been settled, and the remaining balance will be paid in the near future.
During the audit conducted by Deloitte, it was discovered that a significant portion of the $7 billion backlog contained claims that were deemed invalid. Cardoso stated that some of the claims were from entities that did not meet the necessary qualifications, while others were found to be non-existent, indicating an attempt to exploit the system.
“We will not be paying these invalid claims due to the numerous infractions that were identified,” Cardoso affirmed during the interview.
Regarding the remaining $2.2 billion in claims, Cardoso assured that they would be cleared promptly. He expressed optimism that the resolution of the forex backlogs issue would allow the CBN to address other critical matters.
Cardoso also addressed the issue of the undervalued Naira, attributing it to speculation in the forex market. He expressed confidence that this issue would be resolved in due course.
To enhance liquidity, the CBN is working to bring informal players into the official market. Cardoso highlighted recent efforts to include international money transfer operators (IMTOs) in the formal market, which is expected to have a positive impact. Consequently, the disparity between official market rates and Bureau de Change (BDC) rates is rapidly narrowing.
“We anticipate a significant shift. New regulations will help reduce volatility and improve market transparency,” Cardoso affirmed.
By addressing the invalid forex claims, resolving the backlogs, and implementing measures to stabilize the forex market, the CBN aims to strengthen Nigeria’s financial system and promote economic stability.
Via Leadership