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We study the inverses of block Toeplitz matrices based on the analysis of the block cyclic displacement. New formulas for the inverses of block Toeplitz matrices are proposed. We show that the inverses of block Toeplitz matrices can be decomposed as a sum of products of block circulant matrices. In the scalar case, the inverse formulas are proved to be numerically forward stable, if the Toeplitz matrix is nonsingular and well conditioned.