The Central Bank of Nigeria (CBN) says it would soon come up with stringent measures to stabilise multiple exchange rate in the country.
The CBN Acting Governor, Folashodun Shonubi, disclosed this to State House Correspondents after a meeting with President Bola Tinubu at the Presidential Villa in Abuja on Monday, August 14, 2023.
Shonubi said this followed the negative effect on the economy by the noncompliance of operators of the forex market to the harmonisation of rates since its introduction.
He stated that President Tinubu was concerned about the negative impact of the current exchange rate by the operators.
The CBN boss said the apex bank will in a few days take measures to make the operators in the exchange market comply with directives on forex trading.
Shonubi said: “Mr President is very concerned about some of the goings on in the foreign exchange market. One of the things we discussed is what could be done to stabilise 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.
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“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.
“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 that market has been fairly stable and the spreads of the difference have 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 touched 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.”
It would be recalled that Tinubu, in his inaugural speech on May 29, said CBN would work towards a unified exchange rate in order to reduce the nation’s Monetary Interest Rate, currently at 18.5 per cent, and ensure a single exchange rate.
The CBN then adopted a clean float foreign exchange management in the Nigerian Foreign Exchange market.
It abolished its hitherto multiple exchange rate windows and collapsed them into the business-based investors and exporters window.
Currently the dollar exchange for N950 in the black market, while the official window go for N940.
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