President Tinubu Approves Measures to Stabilize Foreign Exchange Market Amid Speculative Concerns.
In response to growing concerns surrounding recent developments in the foreign exchange market, President Bola Tinubu has authorized a series of strategic measures aimed at bolstering stability and liquidity in the market, including addressing challenges within the parallel market.
Mr. Folashodun Shonubi, the Acting Governor of the Central Bank of Nigeria (CBN), disclosed the proactive approach during a press briefing at the Presidential Villa in Abuja, following a meeting with President Tinubu. Shonubi highlighted that the activities witnessed within the parallel market have been largely influenced by speculative demands.
Expressing his worries about the impact on the average citizen, President Tinubu recognized that local economic activities remain closely intertwined with exchange rates prevailing in the parallel market. Consequently, he underscored the government’s resolve to take decisive action against speculators involved in the foreign exchange market, including the parallel market.
Shonubi emphasized the need for foreign exchange market speculators to exercise caution, as the government is poised to implement planned strategies that may result in significant losses for those engaging in speculative practices. While not divulging the specifics of these strategies, Shonubi assured that steps were being taken to enhance the supply of foreign exchange and improve market stability.
“Mr. President is very concerned about some of the goings-on in the foreign exchange market,” Shonubi shared. “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 market has been fairly stable and the spreads of the difference have not fluctuated as much.”
Shonubi dismissed the idea that the changes in the parallel market were driven solely by economic demand and supply dynamics, attributing them more to speculative demands from certain individuals. The CBN Acting Governor hinted at forthcoming developments that will impact the market significantly in the near future.
“Our intention is to ensure the environment operates at a level that’s more efficient but also very reasonable and does not have a negative impact on the lives of the average person,” Shonubi assured.
The President’s proactive approach demonstrates his commitment to safeguarding the stability of the foreign exchange market and its broader implications on the Nigerian economy. As the government’s measures unfold, market participants and citizens alike will be closely watching for their effects on the forex landscape and the well-being of the average person.