Folashodun Shonubi, the Acting Governor of CBN, revealed this after briefing President Bola Tinubu, expressing concerns about the impact on everyday citizens due to recent foreign exchange market developments.
Shonubi emphasized that the naira’s fluctuations in the parallel market are not solely due to economic factors but are also fueled by speculative demand.
While specific details of the intervention measures weren’t disclosed, Shonubi warned speculators of potential significant losses, signaling a commitment to stabilizing the market.
Recently, CBN issued a circular limiting naira payouts for Diaspora remittances within a specific range, aiming to alleviate naira pressure.
However, new revelations about CBN’s financial statements indicate lower foreign exchange reserves than previously reported, raising concerns about defending the naira amidst potential decline.
Experts suggest enhancing interventions and encouraging foreign portfolio inflows to counterbalance the forex crisis. Nigeria’s forex woes have been exacerbated by months of zero earnings from crude oil sales.
With declining oil production worsening the situation, the nation has resorted to borrowing to sustain external reserves. CBN’s efforts to stabilize the market and manage reserves come under scrutiny, with hopes of stronger interventions to alleviate the forex crisis.