CBN warns forex speculators: Be careful, our fresh measures will make you suffer losses soon

By Danlami Nmodu

The Central Bank of Nigeria, CBN has warned foreign exchange speculators to be careful as fresh measures soon to be unveiled by the apex bank will make them suffer losses.

Acting Governor of CBN, Mr. Folashodun Shonubi handed down the warning to forex speculators while addressing State House Press Corps , Monday after a meeting with President Bola Tinubu.

He said, “We do not believe that the changes going on in the parrell market are driven by pure economic demand and supply but are topped by speculative demand from people.

Specifically, he said, “Some of the plans and strategies which I’m not at liberty to share with you, mean 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 text of the CBN Governor’s briefing runs thus in full: “Mr. President is very very concerned about some of the goings on in the foreign exchange market.

“One of the things we discussed were, what could be done to stabilize and what could be done to improve the liquidity in the market and also the goings on in the various other markets including the parallel market.

“He is 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 the exchange rates in the parallel markets.

“We have discussed and shared him what we’re doing to improve supply. 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 parrell 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, mean 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.

“But my presence here is more about the concerns the President has, and he’s needs to know that we are doing something about it, assurances of which I have given him totally.

“So I hope this helps. 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. ..”