CBN to clamp down on forex speculators soon

There are sturdy indications that the Central Bank of Nigeria (CBN) is about to wield the large stick on forex speculators within the nation within the coming days, a growth which will see an enormous crash within the change price of the greenback towards the naira.

The appearing Governor of the Central Bank of Nigeria, Folashodun Shonubi, gave the indications on Monday, shortly after he met with President Bola Ahmed Tinubu on the Presidential Villa in Abuja.

Shonubi stated the President was offended on the actions of speculators, which he stated are fueling an ever-increasing margin between the greenback and naira.

On the parallel market, the greenback change price to naira at the moment stands at about N950 to US$1, a growth that business stakeholders and gamers concern may spur an additional enhance in gasoline pump costs.

Briefing State House correspondents on his interface with the President, the CBN boss stated: “Mr President is very, very concerned about some of the goings-on in the foreign exchange market. One of the things we discussed was what could be done to stabilise the market, 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 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 the exchange rates in the parallel markets. We have discussed and shared with him what we’re doing to improve supply. If you look at the official market, you will 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 that I’m not at liberty to share with you mean that 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.”