Forex: CBN Moves To Halt Fall Of Naira

Posted by Rotimi Fadeyi Business News, Latest Headlines Monday, August 14th, 2023

(AFRICAN EXAMINER) – Acting Governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi on Monday said that the apex bank would soon take measures to halt the fall of the naira

The naira is presently exchanged for over N900 to a dollar at the parallel market

Briefing State House Correspondents on Monday after meeting President Bola Tinubu at the Presidential Villa, the CBN boss warned speculators to be careful because stressing that the measures to be taken may result in significant losses to them.

Shonubi 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 (Tinubu) 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 have 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 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 are 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 is 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”, Shonubi added