The Central Bank of Nigeria says it is set to take new far reaching economic policy measures to curb The naira free fall and stabilise the currency exchange rate against the dollar.
VERY SERIAL reports that the Acting Governor of the CBN, Folasodun Sonubi, made the statement in a press interview to State House Correspondents after briefing President Bola Tinubu on what the bank was doing to stop the persistent depreciation of the naira on Monday at the State House.
Folasodun Sonubi says President Tinubu expressed his concern about the impact of recent developments in the foreign exchange market, particularly on ordinary citizens.
CBN Actively Working To Improve, Stabilize Forex Liquidity and Curb Naira Depreciation
Sonubi said he assured the President that the CBN is actively working to improve liquidity and stability in the market, including addressing issues in the parallel market, adding that the fluctuations in the parallel market are not solely driven by economic factors, but also by speculative demand.
He expressed confidence that the measures being implemented would yield positive outcomes within a few days.
The apex bank governor said while he would not disclose specific details, he warned speculators that the CBN’s upcoming initiatives could potentially lead to significant losses for them.
Read his statement in part:
“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, otherwise called black 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.”