CBN Takes Action to Stabilize Naira Amidst Speculation and Forex Concerns
The Central Bank of Nigeria (CBN) has implemented foreign exchange intervention measures to tackle currency speculators and stabilize the naira, which has been tumbling in the parallel market. The CBN's acting governor, Folashodun Shonubi, stated that the naira's volatility is driven not only by economic factors but also by speculative demand. While specific details of the intervention measures were not disclosed, Shonubi warned speculators of potential significant losses. The CBN has also restricted diaspora remittances, setting limits on the exchange rate for naira payouts. The recent revelation of lower effective foreign exchange reserves in the CBN's financial statements has raised concerns about the bank's ability to defend the naira. Nigeria's zero earnings from crude oil sales for the past seven months have worsened the foreign exchange crisis in the country.