'N1000/$' - CBN moves against black market operators to halt Naira's fall, slows diaspora remittances

Following the fall of the naira in the black market, the Central Bank of Nigeria has begun introducing Forex intervention measures to clamp down on currency dealers and speculators in the FX markets.

The Acting Governor of the CBN, Folashodun Shonubi, revealed the development to journalists at the State House in Abuja on Monday, August 14, 2023, after meeting with President Bola Tinubu.

The CBN boss said he came to tell the President what the apex bank was doing to halt the naira slide.

According to Shonubi, Tinubu showed concerns over the effects of the recent developments in the Forex market, especially on Nigerians.

He said the black market's naira volatility is driven not only by economic factors but also by speculative demand. The CBN governor warned speculators that the planned measures could potentially lead to severe losses for them.

He said the reason for the visit to the President was to reassure Tinubu that the CBN was taking decisive action to address the issues raised.

Per the CBN boss, the measures would yield positive outcomes in a few days.

He revealed that the greatest goal of the apex is to create an efficient and reasonable operating environment that reduces the negative impacts on the lives of Nigerians.

He said: "Mr. President is very concerned about some of the goings in the foreign exchange market. One of the things we discussed is 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'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."

Punch reported that CBN has begun introducing measures to reduce pressure on the naira in the black market.

The apex bank issued a circular to dealers, international money transfer operators (IMTs), and the public.