Following the recent naira depreciation in the parallel market, the Central Bank of Nigeria has begun implementing foreign exchange intervention measures targeted at limiting currency speculators in the foreign exchange markets.
Folashodun Shonubi, Acting Governor of the Central Bank of Nigeria, made the remark to State House journalists on Monday at the Presidential Villa after updating President Bola Tinubu on what the bank was doing to stop the naira’s decline.
He said Tinubu expressed his concern over the effects of the recent developments in the foreign exchange market, particularly on average citizens.
According to Shonubi, the volatility of the naira in the parallel market is not solely driven by economic factors, but also speculative demand.
The apex bank governor said while he would not disclose specific details of the proposed intervention measures, he warned speculators that the proposed measures 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 was taking decisive action to address the concerns raised.
He expressed confidence that the measures being implemented would yield positive outcomes within a few days.