By Adedapo Adesanya
The Central Bank of Nigeria (CBN) has started to clear outstanding matured FX forwards in banks. but despite the widespread reports that over 75 per cent has been cleared, Business Post can authoritatively report that only about 2 per cent has been settled.
A source familiar with the matter told this publication that, “They delivered only about $250 million or so this morning.”
A business publication, Business Day, had earlier today reported that the apex bank cleared up to 80 per cent of its forwards.
However, upon enquiry, the source, who works for a top firm in the financial markets, told this newspaper that contrary to the narrative being peddled, the CBN has only delivered for a few banks, which according to him, is not more than three.
He said these banks are Citibank, Standard Chartered, and Stanbic IBTC.
According to the source, “These may not be entirely accurate. $80 million was delivered to Citi, $100 million to Standard Chartered and I think $70 million to Stanbic.”
It was also gathered that these banks represent a small percentage of outstanding FX forwards, indicating that the largest percentage in mostly Tier 1 banks has not been settled.
“The expectation is that they will be in the next tranche maybe with a lower percentage.”
Nigeria has approximately $7 billion in overdue forward payments in the foreign exchange market, and this has raised worries, especially for investors.
Last week, Mr Wale Edun, the minister of finance and coordinating minister of the economy, said Nigeria is expecting $10 billion in foreign currency inflows in the next few weeks to ease liquidity in the foreign exchange market.
He said the government has a clear view of the inflows into the country in weeks rather than months.
“In addition, from the supply of foreign exchange through NNPC, increased production, reduced expenditure, from transactions such as forward sales, from our discussions with sovereign wealth funds, that are ready to invest and provide advance alongside that investment, there is a line of sight of $10 billion worth of foreign exchange in the relatively near future in weeks rather months,” he said.
