War On Naira Depreciation: CBN Strikes Against Dollar Speculators And Hoarders

Allegedly, the activities of politically exposed persons are contributing to the devaluation of the naira against major foreign currencies…CONTINUE READING....KINDLY READ THE FULL STORY HERE▶

Government efforts to halt the naira’s depreciation received a substantial boost in the last two weeks as the currency appreciated significantly.

During this period, the rising naira brought joy to many Nigerians, with some praising the Central Bank of Nigeria (CBN) for its role in strengthening the currency. However, speculators and hoarders incurred significant losses and expressed discontent.

Unexpectedly, on Thursday, the naira began to depreciate once again. Consequently, the government and the CBN suspect that the gap between official and parallel markets is artificially induced by speculation and hoarding.

A source from the apex bank revealed to The Guardian that powerful speculators and hoarders, allegedly sabotaging the government’s efforts to stabilize the naira against the dollar, will face decisive action.

The source stated, “The Federal Government did an excellent job with the naira during its recent appreciation.

However, powerful speculators and hoarders are pushing back, undermining the government’s efforts. The government plans to go after them and address the situation decisively.”

Based on intelligence, the CBN has concluded that the depreciation is a result of a pushback by speculators and traders.

Consequently, the CBN is gearing up to launch a campaign against speculators and hoarders to prevent the erosion of recent gains against the naira.

Aminu Gwadabe, the President of the Association of Bureau de Change Operators of Nigeria (ABCON), warned that the CBN is prepared to inflict pain on currency speculators.

He highlighted the current market dynamics as a manifestation of the CBN’s measures involving dollar liquidity injection and naira mopping through interest rate hikes, making speculation, hoarding, and substituting naira with other currencies a high-risk endeavor.