…says increase in prices of goods, services influenced by speculators
By Akubulu Ngozi
The Central Bank of Nigeria, CBN, has set out decisive moves to regulate Naira inflation in order to stabilise prices of goods and services.
The move was conveyed by the Acting Governor of CBN, Folashodun Shonubi, lately, after meeting with the President, Bola Ahmed Tinubu at the Presidential Villa, Abuja.
This is coming after the exchange rate of Dollar to Naira increased to N772 at the Foreign Exchange Market and N950 to a Dollar at the Black Market.
According to him, the President is not happy with the recent depreciation of Naira, as such, set to improve the liquidity in the market and the activities in other markets, including the parallel market to stabilise Naira.
He said, “Mr. President is 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 satabilisend 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 with 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.”
Speaking on the cause for the continuous increase in the prices of goods and services, Mr Folashodun blamed speculators, claiming that, changes in the parallel market are driven by pure economic demand and supply but are topped by speculative demand from people.
“We do not believe that the changes going on in the parallel 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, 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.
“But my presence here is more about the concerns the president has, and he 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”.