CBN Source Claims Naira Crash Caused by Powerful Nigerians, Says Speculators Sabotaging FG's Efforts
- The CBN is set to wield its big stick against those causing naira depreciation
- A source said hoarders and speculators are believed to be the reason behind the continuous fall of the naira
- According to the source, the CBN is focused on launching a campaign against them to strengthen the naira
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Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market
A source in the apex bank has accused speculators and hoarders of sabotaging the government’s efforts towards stabilising the naira against the dollar.
The source said the Central Bank of Nigeria (CBN) is set to go after currency hoarders and speculators to stop the continuous depreciation of the naira against major foreign currencies.
Source: UGC
Politically exposed persons benefitting from round-tripping
According to the source, who craved anonymity, politically exposed persons benefiting from the FX round-tripping under the last administration are currently fighting the system.
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The source said that the FG did an excellent job with the naira given its recent appreciation.
The source said the government will go after such speculators and hoarders and deal with them decisively.
The source said:
“Based on the intelligence at my disposal, the CBN has concluded that the depreciation is due to a pushback by speculators and traders,” the source stated.
“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.
The Guardian reported that Aminu Gwadabe, President of the Association of Bureau de Change Operators of Nigeria (ABCON), also said the CBN was set to inflict pain on currency speculators.
He claimed that the ongoing currency recovery was a result of the CBN's two-pronged strategy of injecting dollar liquidity and using interest rate hikes to mop up the naira.
He warned those speculating to tread carefully when targeting the naira. According to him, the CBN has the resources and the logic to keep recording the successes.
Legit.ng earlier reported that the CBN reversed its ban on importers of 43 commodities eight years as part of its effort to stabilise the naira.
Legit.ng also reported that the CBN recently commenced clearing of Forex backlogs, which some blamed for the naira crash.
Cashless policy: Naira notes in circulation to reduce - CBN
In June, Legit.ng reported that the CBN said it would soon reduce the amount of naira in circulation to make the cashless policy more effective.
Chuks Okoroafor, the apex bank branch controller in Cross River state, disclosed this during a two-day CBN fair themed Promoting Financial Stability and Economic Development, Daily Trust reports.
The branch controller also said that they put different initiatives in place to make more money available for people to develop their businesses
Source: Legit.ng
