Depreciation of the Naira: CBN moves to crackdown on speculators

The Central Bank of Nigeria, CBN, on Monday said it is poised to reverse the slide of the naira as it has lined up intervention meassures that will be unveiled in the next few days.

The acting governor of the nation’s apex bank, Folashodun Shonubi, stated this while speaking with State House correspondents after meeting behind closed doors with President Bola Tinubu at the presidential villa, Abuja.

He warned that government will come hard on those involved in underhand undertaking in the foreign exchange market including the parallel market.

The CBN boss said President Tinubu is concerned about the develepment in the market and its effect on the people, saying he discussed what could be done to stabilze the naira with the president.

He noted with dismay that the changes going on in the parallel market are not dictated by demands but speculative attitude.

He warned that the specilators will suffer huge losses when government activates its strategies.

He said: “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’s 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 very reasonable and does not have a negative impact to the best that we can on the lives of the average person.”