The Central Bank of Nigeria has announced its intention to implement fresh strategies aimed at stabilizing the naira’s value in relation to the dollar.
Folasodun Sonubi, the Acting Governor of the CBN, shared this information with State House Correspondents following a briefing with President Bola Tinubu at the State House on Monday.
During the briefing, President Tinubu expressed his apprehension regarding the repercussions of recent developments in the foreign exchange market, especially concerning regular citizens.
Sonubi conveyed that he provided the President with an assurance that the CBN is actively engaged in enhancing liquidity and stability within the market. This includes taking measures to tackle concerns within the parallel market.
Sonubi emphasized that the shifts observed in the parallel market are influenced not only by economic variables but also by speculative demand.
The head of the central bank conveyed that, although he wouldn’t reveal precise particulars, he cautioned speculators about the forthcoming initiatives from the CBN, which could potentially result in substantial losses for them.
He stated that his primary objective in being at the presidential villa was to provide President Tinubu with reassurance that the CBN is actively implementing resolute measures to tackle the highlighted concerns.
He assured that the CBN remains committed to ensuring stability and improving the overall economic landscape.
He said: “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 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.”