ENOUGH LIQUIDITY IS AVAILABLE TO HANDLE THE FOREX BACKLOG- EDUN

Mr. Wale Edun, the Finance and Coordinating Minister of the Economy of Nigera, has guaranteed that there will be enough liquidity in the banking industry to lower the backlog of foreign exchange (FX).

In an interview with Bloomberg on Wednesday, Edu stated that the Central Bank of Nigeria (CBN) is working to reduce the foreign exchange backlog, which stands at approximately $5 billion.

The government thinks it can pay down the backlog almost immediately, so he said there should be a method for the banks to help with the backlog, either on a spot or a forward-rate basis.

He stated, “There should be a way to get the banks to actually help with that backlog, either on a spot or a forward-rate basis. There is actually liquidity within the banking system.”

“We think that the backlog can be nearly cleared in one fell swoop if we utilize the available funds.”

The minister expressed confidence that it could be resolved quickly if efforts to increase oil revenue and mobilize resources that are now in the economy are successful.

When asked about the government's proposal to borrow $1.5 billion from the World Bank, Edun replied that the government's changes deserve financial support from the Bretton Woods institution.

“We anticipate receiving $1 billion or $1.5 billion from the World Bank,” Edun went on to say.

“Although it is still up for debate, we believe that because we are pushing through with our reforms, we will receive support. ”We should be applauded for our efforts to modernize the foreign currency market and reduce gasoline subsidies. We should obtain our reward right now because we have done enough.

Additionally, Edun expressed the nation's confidence in its ability to access the Eurobond market, noting that preparations are in place to do so later this year should interest rates drop enough.

He continued, “We have been informed by the book runners and major issuers that Nigeria ought to have a window in the Eurobond market.”

The finance minister stated that the government intends to use all available liquidity in order to stabilize the naira.

“The main goal is to stabilize the naira, which entails bringing in more liquidity, primarily from oil revenue,” stated Edun.

Additionally, we want to make sure that we have access to Nigerian savings, namely local dollar savings from both inside and outside of the official market. The Nigerian economy has a lot of money.

The naira, the currency of Nigeria, and the foreign exchange market have both experienced volatility since the unification of the exchange rate windows.

Businesses have been impacted by the naira's inability to meet importers' and exporters' needs during transactions because of the scarcity of dollars in the foreign exchange market.

Through the implementation of strategic reforms, the federal government and the apex bank have attempted to revitalize the economy.

The federal government has boosted oil production, renovated the Port Harcourt refinery, and assisted the Dangote refinery in its operations as a means of achieving economic stability.