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Business News of Monday, 13 November 2023


CBN source reveals naira crash caused by powerful Nigerians, speculators sabotaging FG's efforts

Olayemi Cardoso Olayemi Cardoso

A source in the apex bank has said that speculators and hoarders are sabotaging the government’s efforts towards stabilising the naira against the dollar.

As a result, the Central Bank of Nigeria (CBN) has said it is going after currency hoarders and speculators to stop the continuous depreciation of the naira against major foreign currencies.

Politically exposed persons benefit from round-tripping

According to the source who craved anonymity, politically exposed persons benefiting from the FX round-tripping under the last administration are currently fighting the system.

The source said that the FG did an excellent job with the naira given its recent appreciation.

It noted that speculators and hoarders, who are powerful Nigerians, are pushing back and sabotaging the government’s efforts.

It, however, staed that the government will go after them and deal with them decisively.

The source said, “Based on the intelligence at my disposal, the CBN has concluded that the depreciation is due to a pushback by speculators and traders,” the source stated.

“Now, the CBN is focused on launching a campaign against speculators and hoarders else, the gains against the naira will be eroded if nothing drastic is done.

The Guardian reported that Aminu Gwadabe, the President, Association of Bureau de Change Operators of Nigeria (ABCON) also said that the CBN was set to inflict pain on currency speculators.

He claimed that the ongoing currency recovery was a result of the CBN's two-pronged strategy of injecting dollar liquidity and using interest rate hikes to mop up the naira.

He warned those speculating to tread carefully when targeting the naira.

According to him, the CBN has the resources and the logic to keep recording the successes.

It could be recalled that as part of its effort to stabilise the naira, limitations on foreign exchange that the CBN imposed on importers of 43 commodities eight years ago have finally been abolished. reported that the CBN also began to clear Forex backlogs, which are blamed for the naira crash.