The Central Bank of Nigeria (CBN) has announced its intention to intensify its crackdown on foreign exchange (Forex) speculators as part of efforts to stabilize the naira and maintain order in the foreign exchange market.
This move comes amid concerns over the activities of speculators, which have been blamed for undermining the stability of the naira.
Key Details:
- CBN’s Commitment: Governor Olayemi Cardoso emphasized the bank’s unwavering commitment to identifying and eliminating bad actors in the Forex market. He highlighted the importance of safeguarding the market from practices that threaten price stability and investor confidence.
- Market Dynamics: The naira recently experienced a slight depreciation at the official foreign exchange market, closing at ₦1,532.39/$ compared to ₦1,531.19/$ the previous day. However, the Bureau De Change (BDC) segment remained stable at ₦1,570/$, reflecting steady demand for physical dollars in the informal market.
- Reforms and Surveillance: The CBN has introduced several reforms, including the Electronic Foreign Exchange Matching System (B-Match) and the Nigeria Foreign Exchange Code, to enhance transparency and operational efficiency. These measures aim to align the Forex market with market fundamentals and curb speculative activities.
- Impact on the Naira: The CBN’s interventions have helped mitigate sharp depreciation of the naira, with improved liquidity and renewed investor confidence contributing to relative stability in the Forex market.
This renewed crackdown underscores the CBN’s determination to restore stability and confidence in Nigeria’s foreign exchange market.
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