There are strong indications that the apex regulatory agency, the Central Bank of Nigeria (CBN) is set to wield the big stick on forex speculators in the country in the coming days, a development that may see massive crash in dollar against the naira.
Acting Governor of the Central Bank of Nigeria, Folashodun Shonubi gave this indications on Monday, shortly after he met with President Bola Ahmed Tinubu at the Presidential Villa Abuja.
Shonubi said the President was angry at the activities of speculators which he believes was fueling an ever increasing margin between the dollar to naira.
At the parallel market dollar exchange rate to naira currently stands at about N950 to US$1, a development that industry stakeholders and players fear might spur further increase in fuel pump prices.
This comes after the Federal Government announced a removal of subsidy on fuel on May 29th, prompting hardship on majority of Nigerians.
But briefing State House Correspondents of his interface with the President, the CBN Boss said, “Mr. President is very very concerned about some of the goings on in the foreign exchange market. One of the things we discussed were, what could be done to stabilize 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 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 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 are not fluctuated as much.
“We do not believe that the changes going on in the parrell market are driven by pure economic demand and supply but are topped 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 he’s 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 which 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”.
