The Central Bank of Nigeria (CBN), has vowed to go after currency hoarders and speculators whose activities are affecting the appreciation of Naira against the US dollar.
An authoritative source in the apex regulatory bank said the speculators and hoarders are sabotaging the government’s efforts towards stabilising the naira against the dollar.
It could be recalled that the government’s efforts to stop the depreciation of the naira relative to major currencies received a significant boost in the last two weeks when the naira appreciated significantly.
However, in the last two days, the rally has slowed down and naira has started depreciating again as speculators and hoarders fight back.
Speaking, the source who craved anonymity because he’s not authorized to speak, said politically exposed persons that benefited from the FX round tripping under the last administration are currently fighting the system in order to have a depreciated naira.
“The federal government did an excellent job with the naira given its recent appreciation. Speculators and hoarders who are powerful Nigerians are pushing back and sabotaging government efforts. The government will go after them and deal with them decisively.
“Based on the intelligence at my disposal, the CBN has concluded that the depreciation is due to a pushback by speculators and currency traders,” the source stated.
“Now, the CBN is focused on launching a campaign against speculators and hoarders; otherwise the gains recorded so far in the forex market will be eroded if nothing drastic is done.”
Corroborating the CBN source, the Association of Bureau de Change Operators of Nigeria (ABCON) warned that the CBN was set to inflict pain on currency speculators.
The President of ABCON, Aminu Gwadabe, said, “what is happening in the market and the continuous naira rebound are the manifestations of the CBN double-edged sword measures of dollar liquidity injection and naira mopping through the instrumentality of interest rates hikes.
“It is a good development as it is (now) a great risk to speculate, hoard and substitute naira for other currencies,” Gwadabe declared.
“As we continue to observe developments, there is the need for caution in attacking the naira, as it all appears that the CBN has got the arsenal and the logic to continue to enshrine the success recorded,” ABCON noted.