In response to the recent decline of the naira on the black market, the Central Bank of Nigeria (CBN) has initiated proactive Forex intervention measures to curtail the activities of currency dealers and speculators within the foreign exchange (FX) markets. The Acting Governor of the CBN, Folashodun Shonubi, disclosed this development during a press briefing at the State House in Abuja on Monday. Shonubi had met with President Bola Tinubu to discuss the ongoing efforts to counter the naira’s downward trend.
Shonubi emphasized that the recent interventions were a response to the naira’s volatility on the black market, which has been influenced not only by economic factors but also by speculative demand. He noted that President Tinubu expressed concern over the repercussions of these developments on Nigerians, prompting the CBN to take decisive measures.
Addressing the issue, Shonubi stated, “The black market’s naira volatility is driven not only by economic factors but also by speculative demand. We want to assure Nigerians that we are taking steps to address this and stabilize the situation. The goal is to create an efficient and reasonable operating environment that minimizes the adverse impact on the lives of Nigerians.”
The CBN governor also highlighted that the forthcoming measures aimed at reducing the naira pressure in the black market would yield positive outcomes within a short span. He assured that the apex bank was determined to stabilize the situation and restore market confidence.
In relation to the President’s concerns, Shonubi mentioned, “Mr. President is very concerned about some of the goings-on in the foreign exchange market. He’s concerned about its impact on the average person since, unfortunately, a lot of activities that we do, which are purely local, are still referenced to exchange rates in the parallel market.”
Recent reports by Punch indicated that the CBN had already started implementing measures to alleviate pressure on the naira in the black market. The central bank issued a circular to dealers, international money transfer operators (IMTs), and the general public to communicate the ongoing efforts and actions taken.
The CBN’s commitment to stabilizing the naira’s value and addressing the challenges in the foreign exchange market reflects its dedication to fostering economic stability and ensuring a conducive environment for the welfare of Nigerian citizens.