CBN to Unveil New Strategy to Reverse Slide of Naira, As Clampdown on Forex Speculators is Imminent

The Central Bank of Nigeria (CBN) has set the machinery in motion to reverse the slide of the naira, which has dramatically fallen to an unprecedented low level after President Tinubu sanctioned the liberalisation of forex exchange system

The Acting CBN Governor, Mr. Folashodun Shonubi

declared that the apex bank has lined up intervention measures that will be unveiled in the next few days.

He made this disclosure to news men on Monday after a meeting with President Bola Tinubu at the presidential villa, Abuja.

Mr. Shonubi sternly warned that the government will come down hard on those involved in underhand undertaking in the foreign exchange market, including the parallel market.

He declared that the president is concerned about the development in the market and its effect on the people, saying that he discussed what could be done to stabilize the naira with the president.

He averred that the changes going on in the parallel market are not dictated by demands but by speculative attitude which is harming the economy.

He hinted that the speculators will suffer huge losses soon after the government activates its strategies.

In his words: “Mr President is very concerned about some of the goings on in the foreign exchange market.

“One of the things we discussed is what could be done to stabilize and what could be done to improve the liquidity in the market and also the goings on in the various other markets, including the parallel market.

“He is concerned about its impact on the average person, since, unfortunately, a lot of activities that we do, which are purely local, are still referenced to exchange rates in the parallel market.

“We’ve discussed and I’ve shared with him what we’re doing to improve supply.

“If you look at the official market, you’ll find that that market has been fairly stable and the spreads of the difference have not fluctuated as much.

“We do not believe that the changes going on in the parallel market are driven by pure economic demand and supply, but are touched by speculative demand from people.

“Some of the plans and strategies, which I’m not at liberty to share with you, means sooner rather than later, the speculators should be careful because we believe the things we’re doing, when they come to fruition, may result in significant losses to them.

“But my presence here is more about the concerns the President has and his needs to know that we are doing something about it, assurances of which I have given him totally.

“So I hope this helps. We are looking at it and we’re doing things which will significantly impact the market in a few days time and we will all see it.

“The intention is to ensure the environment operates at a level that’s more efficient, but also that is also very reasonable and does not have a negative impact to the best that we can on the lives of the average person”, he added.