Amidst the recent depreciation of the Naira against the US Dollar, the Central Bank of Nigeria (CBN) has taken a firm stance against currency hoarders and speculators. The CBN aims to counteract the influence of these entities, which has been contributing to the devaluation of the Naira.
A reliable source familiar with the CBN’s decision disclosed that the activities of speculators and hoarders have been undermining the government’s efforts to stabilize the local currency.
Recent efforts by the CBN to curb the Naira depreciation have yielded positive results, with the currency experiencing a substantial boost over the past two weeks. This progress can be attributed to the implementation of President Tinubu’s commitment to clear the estimated $7 billion outstanding foreign exchange.
Although many Nigerians have expressed satisfaction with the appreciation and strengthening of the Naira, the local currency began to depreciate again from Wednesday. Over the last two days, the momentum has slowed, and the value of the currency against the US Dollar has started to decline due to purported counteractive measures by speculators and hoarders.
An anonymous source revealed that “politically exposed persons who profited from foreign exchange round-tripping during the previous administration are currently opposing the system.”
“The federal government made significant strides in bolstering the Naira, and the backlash from powerful Nigerian speculators and hoarders is an attempt to sabotage these efforts. The government is poised to pursue and address them decisively,” the source continued.
According to the source, the CBN has determined that the depreciation is a result of resistance from speculators and current traders. In response, the CBN is set to initiate a targeted campaign against speculators and hoarders to prevent a erosion of the gains made against the Naira.
“In the absence of decisive action, the Naira’s progress stands to be eroded. Powerful individuals who engaged in round tripping during the previous administration are still participating in speculative activities. The government is prepared to take firm action against them,” the source emphasized.
