Measures to boost forex liquidity coming –CBN

By Adekunle Adesuji,Abuja

 

The Acting Governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi, has said that the apex bank will, in the next few days, be taking steps to improve the liquidity in the foreign exchange market.

 

 

Addressing State House correspondent on Monday , Shonubi disclosed that he had met with President Bola Tinubu, who voiced his concern regarding developments in the market and its impact on Nigerians.

 

The Acting CBN governor shared his belief that the changes in the market are driven mostly by speculative demand and was confident that the steps that will be implemented soon will significantly impact the market.

 

While he did not disclose the planned measures, Sonubi warned speculators that the CBN’s upcoming initiatives could potentially lead to significant losses for them.

 

He also said the measures, when implemented, would yield positive outcomes within a few days.

 

He said, “Mr. president is very concerned about some of the goings on in the foreign exchange market.

 

“One of the things we discussed is what could be done to stabilise and what could be done to improve the liquidity in the market and also the goings on in the various other markets, including the parallel market.

 

“He’s concerned about its impact on the average person, since, unfortunately, a lot of activities that we do, which are purely local, are still referenced to exchange rates in the parallel market.

 

“We have discussed and I have shared with him what we’re doing to improve supply. If you look at the official market, you will find that that market has been fairly stable and the spreads of the difference have not fluctuated as much.

 

“We do not believe that the changes going on in the parallel market are driven by pure economic demand and supply, but are touched by speculative demand from people.

 

“Some of the plans and strategies, which I am not at liberty to share with you, means sooner rather than later, the speculators should be careful because we believe the things we’re doing, when they come to fruition, may result in significant losses to them.

 

“But my presence here is more about the concerns the president has and his needs to know that we are doing something about it, assurances of which I have given him totally.

 

“We are doing things which will significantly impact the market in a few days time and we will all see it.

 

“The intention is to ensure the environment operates at a level that’s more efficient, but also that is also very reasonable and does not have a negative impact to the best that we can on the lives of the average person.”

 

.As transportation cost increases by 98% in one month – NBS

 

The average cost of bus transportation within Nigerian cities rose from N649.59 in May 2023 to N1,285.41 in June 2023 as the pump price of Premium Motor Spirit rose, according to the National Bureau of Statistics.

 

This means that the cost of intra-city bus transportation rose by 98 per cent or N636 within one month.

 

Figures obtained from the Transport Fare Watch report of the NBS for June 2023 revealed.

 

It said this included the breakdown of bus journeys within the cities per drop constant route; bus journey intercity (state route) charge per person amongst other means of transportation.

 

On a year-on-year basis, it said bus fares rose by 120.63 per cent from N582.61 paid by commuters in June 2022.

 

The average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023 compared to N4,002.16 in May 2023 indicating an increase of 42.09 per cent on a month-on-month basis.

 

The report read, “The average fare paid by commuters for bus journeys within the city per drop increased by 97.88 per cent from N649.59 in May 2023 to N1,285.41 in June 2023. On a year-on-year basis, it rose by 120.63 per cent from N582.61 in June 2022.

 

“In another category, the average fare paid by commuters for bus journey intercity per drop rose to N5,686.49 in June 2023, indicating an increase of 42.09 on a month-on-month basis compared to N4,002.16 in May 2023. On a year-on-year basis, the fare rose by 55.25 per cent from N3,662.87 in June 2022.”