CBN to adopt proactive measures to halt Naira's free fall within days

Acting CBN Gov.-Folashodun-Adebisi-Shonubi

Acting CBN Governor, Mr Folashodun Adebisi Shonubi

By Kazeem Ugbodaga

The Central Bank of Nigeria (CBN), on Monday said it will adopt proactive measures that will halt the free fall of the Naira at the foreign exchange market.

Acting CBN Governor, Folashodun Shonubi, said in Abuja that President Bola Tinubu is very concerned about some of the goings on in the foreign exchange market.

He said one of the things they discussed was 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.

Shonubi added that 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.”

He said he had discussed and shared with the president what the apex bank was 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.

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“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,” he stated.

According to him, some of the plans and strategies, which he was not at liberty to share with the public, meant sooner 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.”

He said his presence his briefing the media was more about the concerns the President has and his needs to know that the bank was doing something about it, assurances of which he had 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,” he said.

Shonubi added that the intention of the CBN was to ensure the environment operates at a level that is more efficient, reasonable and did not have a negative impact on the lives of the average.

 

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