Abuja, Aug. 15, 2023: Concerned about recent developments in the foreign exchange market, President Bola Tinubu has approved measures to stabilise and enhance liquidity in the market, including the parallel market.
The Acting Governor of the Central Bank of Nigeria (CBN), Mr. Folashodun Shonubi, who disclosed this to journalists at the Presidential Villa, Abuja, after meeting with President Tinubu, also noted that the activities being witnessed at the parallel market are being driven by speculative demands.
He said the President expressed worry over the impact on the average person, especially as all local economic activities are still influenced by parallel market exchange rates.
He warned that government will come hard on those involved in speculation in the foreign exchange market, including the parallel market.
He warned foreign exchange market speculators to be wary of their negative activities, revealing that they (speculators) are bound to suffer huge losses when government activates its planned strategies.
“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 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’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 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 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 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,” Shonubi said.