August 14, (THEWILL) – The Central Bank of Nigeria (CBN) says it has taken appropriate measures to stabilise the unfavourable fluctuations in the foreign exchange market.
Acting Governor of the apex bank, Folashodun Shonubi, disclosed this to State House correspondents on Monday, in Abuja, after meeting with President Tinubu at the Presidential Villa.
THEWILL reports that the Nigerian Naira has fallen to N945 per dollar at the parallel market since the CBN floated the currency in June
Speaking on the development, Shonubi said activities at the parallel market are being driven by speculative demands.
Shonubi said the President expressed worry over the impact on the average person, especially as all local economic activities are still influenced by parallel market exchange rates.
He, however, warned that the government will come hard on those involved in speculation in the foreign exchange market, including the parallel market.
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 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 topped 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 day’s 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.”
About the Author
