Emefiele Warns Currency Speculators As Naira Falls
The naira is facing tough time again in the currency market and speculators are already positioning themselves to reap bountifully.
But Central Bank of Nigeria, CBN Godwin Emefiele has some words of advice for them – don’t do it, you will lick your wounds again.
Speaking at the 2018 Annual Bankers Dinner in Lagos, Emefiele said some people are already betting on the fall of the local currency, following a drop in naira at the parallel market this week.
The governor said the CBN, under his leadership, has been in more difficult positions, yet defending the naira — a position the bank is still willing to maintain to keep the currency stable.
“Between day before yesterday and yesterday, we saw some uptick, and I can say that we are seeing that some of our friends at the other side are rearing their heads, and I want to assure them that they are going to lick their wounds this time again,” Emefiele said.
“If you are joining them in speculating, we are in a better position than we were in 2016, 2017. Don’t forget, reserves were $23 billion in October 2016, you could say that we were weak then, today reserves are comfortably at $44 billion.
“So you can imagine that we do have the strength to confront you and we would do so."
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