The Central Bank of Nigeria (CBN) has said that further steps will be taken to stabilise the naira’s value relative to the dollar.
The disclosure was made to State House reporters by Acting CBN Governor Folasodun Sonubi after he had briefed President Bola Tinubu on Monday at the State House on the bank’s efforts to stop the slide.
According to him, President Tinubu voiced his concern on the effects of recent changes in the foreign exchange market, particularly on regular people.
Read Also: Air Force Confirms Crash Of Craft In Niger State
The CBN is aggressively trying to increase market liquidity and stability, including resolving challenges in the parallel market, Sonubi said he promised the President.
Sonubi stressed that the fluctuations in the parallel market are not solely driven by economic factors, but also by speculative demand.
The apex bank governor said while he would not disclose specific details, he warned speculators that the CBN’s upcoming initiatives could potentially lead to significant losses for them.
He said the primary purpose of his presence at the presidential villa was to reassure the President that the CBN is taking decisive action to address the concerns raised.
He expressed confidence that the measures being implemented would yield positive outcomes within a few days.
According to him, the CBN’s ultimate goal is to create an efficient and reasonable operating environment that minimise negative impacts on the average Nigerian’s life.
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.”
