The Central Bank of Nigeria (CBN) has announced plans to take critical decisions to reverse the slide of the naira in the next few days, thereby resulting in significant losses to the speculators.
The acting CBN governor, Folashodun Shonubi, dropped the hint on Monday while briefing State House reporters after a meeting with President Bola Ahmed Tinubu at the Presidential Villa, Abuja.
The apex bank boss, who warned that the speculators would suffer huge losses when the government activates its strategies, said the changes going on in the parallel market were not dictated by demands but by speculative attitude.
Shonubi also warned that the government would tackle those involved in underhand undertakings in the foreign exchange market including the parallel market.
FG workers lament non-payment of 17 months’ salaries
Insecurity: Declare State of Emergency In Zamfara, Group Tells FG
The acting CBN boss, who said the president was concerned about the development in the market and its effect on the people, added that he discussed what could be done to stabilise the naira with the president.
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 stabilise 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 that 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. Thank you very much.”
However, a sources told Daily Trust that measures approved by the president to stabilise and enhance liquidity in the market, including the parallel market included the imminent sanctions on commercial banks found to be deeply involved in the underhand activities in the foreign exchange market.
These measures are expected to be announced by the relevant institutions of government.
