CBN moves to go after currency speculators and hoarders

The apex believes the speculators and hoarders are sabotaging the government’s efforts towards stabilising the naira against the dollar.

Recently, the government’s efforts to stop the depreciation of the naira received a significant boost when the naira appreciated significantly.

Many Nigerians were excited about the development with many commending the federal government and CBN for doing a good job.

However, the naira has begun to depreciate again.

The government and the CBN’s positions have always been that the gap between the official and parallel market is artificially induced by speculation and hoarding.

According to Independent, a CBN source who craved anonymity because he’s not authorized to speak, said politically exposed persons who benefited from the FX roundtripping under the last administration are currently fighting the system in other to have a depreciated naira.

The source said, “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 current traders.” 

“Now, the CBN is focused on launching a campaign against speculators and hoarders else, the gains against the naira will be eroded if nothing drastic is done.

“Powerful Nigerians who benefitted from round tripping in the last administration are still involved in speculation now. They are used to easy money and the government is ready to decisively move against them.”

Corroborating the CBN source, the Association of Bureau de Change Operators of Nigeria said 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.”

“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.”

The association noted there had been “panic selling as against panic buying.”

The BDC operators, therefore, called on the apex bank to continue to make clarifications and implement some of their recommendations to include them in the foreign exchange market.