The acting Governor of the Central Bank of Nigeria (CBN), Folashodun Adebisi Shonubi has cautioned the parallel market operators to tread gently else they will soon be operating at a great loss.
“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.”
The CBN boss, who spoke to newsmen today, August 14, shortly after a meeting with President Bola Ahmed Tinubu at the Presidential villa, Abuja, referred to the changes in the parallel market which he said are not driven by pure economic demand and supply “but are topped by the speculative demand from people.
“If you look at the official market, you will find that that market has been fairly stable and the spreads of the difference are not fluctuated as much.
“We do not believe that the changes going on in the parallel market are driven by pure economic demand and supply but are topped by speculative demand from people.
“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.”
The CBN Acting Governor said that President Tinubu was very concerned about some of the goings on in the foreign exchange market and asked what could be done to stabilize and what could be done to improve the liquidity in the market.
The President, he said, is also worried about the goings on in the various other markets, including the parallel market, and about its impact on the average person.
Shonubi said that so far, a lot of activities that the CBN carried out are purely local and are still referenced to the exchange rates in the parallel markets.
‘We have discussed and shared with him what we’re doing to improve supply.
“My presence here is more about the concerns the President has. He needs to know that we are doing something about it, assurances of which I have given him totally.
“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 that the environment operates at a level that’s more efficient, but also that is very reasonable and does not have a negative impact to the best that we can have on the lives of the average person.”
