…Say move ‘ll ensure market stability

By Yinka Kolawole

The Association of Corporate Treasurers of Nigeria (ACTN) has commended the Central Bank of Nigeria (CBN) for its prompt and efficient settlement of matured foreign exchange (FX) forwards.

Foreign exchange forward is a binding contract in the FX market that locks in the exchange rate for the purchase or sale of a currency on a future date. In a statement made available to Vanguard on Thursday, the President of ACTN, Mr Adeyinka Ogunnubi, said the CBN’s recent action to swiftly settle matured foreign exchange forwards has been a significant step forward in promoting stability and confidence in Nigeria’s FX market.

His words: “It demonstrates the regulator’s commitment to ensuring the ease of doing business and reducing uncertainty in the market.”We believe that the timely settlement of matured FX forwards is crucial for our members and the broader business community. It allows our corporate treasurers to efficiently manage their foreign exchange risks and plan for their financial obligations.

“Ogunnubi said that the move shows CBN’s responsiveness to the concerns of businesses and its continued efforts to implement policies that enhance the resilience of the Nigerian financial system.

“As an association dedicated to advancing best practices in corporate treasury management, ACTN will continue to work closely with regulatory authorities to support policies that foster transparency, predictability, and stability in Nigeria’s financial markets.

“We also encourage our members and the entire corporate treasury community to remain engaged and proactive in their foreign exchange risk management strategies, leveraging the CBN’s commitment to ensuring a conducive operating environment.

“We extend our appreciation to the CBN for its dedication to improving the Nigerian financial landscape. We look forward to further collaboration and dialogue to address the challenges and opportunities faced by corporate treasurers in Nigeria,” he stated.