How CBN Caused The Naira to Appreciate


The recent appreciation of the flailing Naira at the parallel market had everything to do with the tactics of the CBN, Guardian reports.

It’s believed that the apex bank, in a bid to stabilize the currency, rolled out a “test-run” of measures which hit negative speculators painfully in the solar plexus.

Top sources at the CBN said that the deployment of a number of measures by the institution had proved that turning the tide in the forex market is not impossible, especially with the “severe punishment suffered by currency hoarders and speculators” on Wednesday.

The naira’s exchange rate to the dollar had on Wednesday assumed multiple pricing trend at various centres across the country, with the lowest price at N220 to the dollar, while the highest was N300.

It will be recalled that the CBN had said that speculators were behind the market burble, which made a mince-meat of the Naira, sending it crashing to an all-time low of N400 to the dollar.

An official said even though the rates at the parallel market may fall again as speculators may persist, they will only be “gambling” with what is left of Wednesday’s loss, which they will eventually lose with further “strike” from the plans.

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