Acting Governor of the Central Bank of Nigeria (CBN), Fola Shonubi, has issued a warning to currency speculators about potential losses as the bank prepares to implement a new policy aimed at stabilizing the exchange rate. Shonubi revealed that the CBN is introducing an upcoming policy to bridge the gap between the official and black market rates, which have seen disparities. The black market rate recently dropped to N950/$1, while the official rate averaged N765/$1 due to persistent demand surpassing supply.
Shonubi highlighted President's concern over the foreign exchange situation and its impact on the economy. Efforts are being put in place to ensure stability and enhance liquidity in the market. Shonubi emphasized that activities tied to exchange rates in the parallel market impact the average citizen, even though they may not be directly related to international transactions.
Regarding the disparity between the markets, Shonubi stated, "We do not believe that the changes going on in the parallel market is driven by pure economic demand and supply but are topped by speculative demand from people." To address this issue, Shonubi mentioned that undisclosed strategies and plans could lead to substantial losses for speculators in the near future.
While he refrained from revealing specific details, Shonubi assured that the policy would significantly impact the market within a few days. He emphasized the intention to create an efficient and reasonable environment that doesn't adversely affect the lives of the general public. Shonubi's statements come amidst ongoing efforts to stabilize Nigeria's exchange rate and mitigate the challenges posed by speculative activity in the foreign exchange market.
Source: Nairametrics
Shonubi highlighted President's concern over the foreign exchange situation and its impact on the economy. Efforts are being put in place to ensure stability and enhance liquidity in the market. Shonubi emphasized that activities tied to exchange rates in the parallel market impact the average citizen, even though they may not be directly related to international transactions.
Regarding the disparity between the markets, Shonubi stated, "We do not believe that the changes going on in the parallel market is driven by pure economic demand and supply but are topped by speculative demand from people." To address this issue, Shonubi mentioned that undisclosed strategies and plans could lead to substantial losses for speculators in the near future.
While he refrained from revealing specific details, Shonubi assured that the policy would significantly impact the market within a few days. He emphasized the intention to create an efficient and reasonable environment that doesn't adversely affect the lives of the general public. Shonubi's statements come amidst ongoing efforts to stabilize Nigeria's exchange rate and mitigate the challenges posed by speculative activity in the foreign exchange market.
Source: Nairametrics
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