Folasodun Sonubi, the acting governor of the CBN, disclosed this following a meeting with President Bola Tinubu in Abuja on Monday, emphasizing Tinubu’s concerns regarding the consistent depreciation of the naira against the dollar and the need to address the issue promptly.
Sonubi pointed out that the fluctuations observed in the parallel market are not solely a result of economic factors but are significantly influenced by speculative demand.
Although the specifics of these upcoming measures were not disclosed, Sonubi cautioned speculators, stating that the initiatives being prepared by the CBN could lead to substantial losses for them.
He also conveyed his optimism that once implemented, these measures would yield positive results in a short period.
“Mr. President is deeply troubled by the ongoing developments in the foreign exchange market,” Sonubi stated.
“Our discussions centered on strategies to achieve stability, enhance liquidity in the market, and address issues in other markets, including the parallel market,” he added.
Sonubi explained that the President’s concerns extend to these developments’ impact on ordinary citizens, given that local activities are still tied to exchange rates prevalent in the parallel market.
“We have deliberated extensively on measures to improve supply. It’s evident that the official market has demonstrated relative stability, with consistent differences in spreads,” Sonubi noted.
He stressed that the changes witnessed in the parallel market are driven not just by economic supply and demand but are greatly influenced by speculative demand from various quarters.
While not fully disclosing the forthcoming plans and strategies, Sonubi alluded to their potential to significantly affect speculators.
“Without revealing all the details, it’s clear that our imminent actions may expose speculators to considerable risks,” Sonubi cautioned.
“My presence here mainly emphasizes the President’s concerns and his desire to see concrete steps taken. I have assured him of our decisive actions in this regard.”
“We are implementing strategies that will have a marked impact on the market within a matter of days, and the results will be visible to all.”
Sonubi concluded by reiterating the intent to create a more efficient and reasonable operational environment that does not adversely affect the lives of the average Nigerian.
In June 2023, the CBN announced the unification of all foreign exchange (FX) market segments, relinquishing control over the forex market and allowing market forces to determine the exchange rate of the local currency.
Following this decision, the naira touched an all-time low of N950 to the dollar in the parallel market last week.
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