CBN Reveals Plans to Bolster Naira Amid Slide

In a bid to curb the devaluation of the Nigerian currency, the naira, the Central Bank of Nigeria (CBN) has laid out a series of intervention measures that are set to be unveiled in the coming days.

The acting governor of the CBN, Folashodun Shonubi, shared this development with reporters on Monday following a meeting with President Bola Tinubu at the presidential villa in Abuja.

Shonubi, during his briefing, emphasized that the government is prepared to take stern actions against those engaging in illicit activities within the foreign exchange market, including activities on the parallel market.

He conveyed that President Tinubu is deeply concerned about the ongoing depreciation of the naira and its potential impact on the nation’s citizens. The acting CBN governor reported that he discussed potential strategies to stabilize the naira with the president.

Of particular concern to the CBN is the speculative behavior prevailing in the parallel market. Shonubi pointed out that the fluctuations witnessed in this market are not solely driven by genuine market demand but rather by speculative activities. He cautioned that these speculators are likely to face substantial losses as the government moves forward with its strategies to address the issue.

Shonubi revealed, “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.”

He further conveyed that his presence at the meeting with the president was aimed at addressing the concerns raised by President Tinubu. Shonubi assured the president that concrete measures are in place to tackle the naira’s depreciation, offering a hopeful perspective on the situation.

“We are looking at it and we’re doing things which 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,” Shonubi stated.

As Nigeria grapples with the economic challenges posed by the naira’s slide, the CBN’s commitment to stabilizing the currency and thwarting speculative behavior signals a concerted effort to safeguard the country’s financial well-being. The upcoming unveiling of the intervention measures holds the promise of injecting stability and confidence back into Nigeria’s currency landscape.