Tinubu Vows To Clear Foreign Exchange Contracts Backlog

Tinubu Vows To Clear Foreign Exchange Contracts Backlog

In a bid to boost investor confidence, President Bola Ahmed Tinubu has declared that his administration will clear the foreign exchange contracts backlog and honour all future contracts.

Tinubu made the declaration on Monday while speaking at the ongoing Nigeria Economic Summit #NES29 in Abuja.

He said, “All foreign exchange future contracts will be honoured by this government. I assure you we have a line of sight to the foreign exchange we need to refloat this economy. And we will get it.”

The President’s assurance comes as the country’s currency, the Naira, continues to decline in value due to the increasing scarcity of the US Dollar.

At the parallel market, the Naira started trading at 1,175/$ on Friday and closed at 1,190/$. This is a decrease from two weeks ago when the Naira traded at 1,100/$ at the parallel market.

However, there was a slight appreciation in the Naira’s value on the Investor & Exporter forex window. It sold at 808.28/$ at the close of trading on Friday, compared to 810.05/$ on Thursday.

Earlier, the Central Bank of Nigeria (CBN) issued forward contracts to various Nigerian businesses, guaranteeing the purchase of dollars at a predetermined price in the future.

However, the CBN has been struggling to meet its obligations under these contracts, which has led to a backlog of unpaid contracts.

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