CBN Moves To Clamp Down On Forex Speculators

The Central Bank of Nigeria (CBN) has taken proactive measures to counteract the depreciation of the naira, with imminent interventions set to be unveiled within the coming days.

Acting governor of the apex bank, Folashodun Shonubi, disclosed this to State House correspondents yesterday after a meeting with President Bola Tinubu at the presidential villa, Abuja.

Shonubi warned that the government would take stringent action against those engaged in clandestine activities within the foreign exchange market, including the parallel market.

Highlighting the president’s apprehensions concerning the market’s fluctuations and their impact on the populace, Shonubi said discussions had revolved around strategies to stabilise the naira.

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He noted that speculative tendencies rather than demand were steering changes in the parallel market, and cautioned that speculators would face substantial losses once the government’s plans were executed.

He said: “Mr President is very concerned about some of the goings-on in the foreign exchange market and its impact on the average person

“One of the things we discussed is what could be done to stabilise it 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.

“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.”

According to him, government’s actions will significantly impact the market in a matter of days.

“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.”

“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 do, on the lives of the average person,” he said.