Central Bank of Nigeria (CBN) on Friday injected $197.71 million into the foreign exchange market to Authorised Dealers, as part of measures to ease pressure on the naira amid global shocks such as falling oil prices and new U.S. import tariffs in a bid to maintain market stability and liquidity.
The apex bank’s director of Financial Markets Department, Omolara Omotunde Duke, in a statement, said the apex bank’s action followed noticeable movements in the FX market between April 3 and 4, 2025, which she states are being driven by broader economic shifts affecting several emerging and developing countries.
Crude oil, Nigeria’s main revenue earner, has now dropped more than 12 per cent in recent days, trading at around $65.50 per barrel, a development that poses significant challenges for the country’s dollar inflows and external reserves.
She states: “The Central Bank of Nigeria has noted recent movements in the foreign exchange market between April 3 and 4, 2025, reflecting broader global macroeconomic shifts currently affecting several Emerging Market and Developing Economies.
“These developments were as a result of the recent announcement of new import tariffs by the United States government on imports from several economies, which has triggered a period of adjustment across global markets.
Crude oil prices have also weakened – declining by over 12 per cent to approximately US$65.50 per barrel presenting new dynamics for oil-exporting countries such as Nigeria.
In line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN facilitated market activity on Friday, April 4, 2025, with the provision of US$197.71 million through sales to Authorized Dealers. This measured step aligns with the Bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market.”
Despite the turbulence, the central bank insisted Nigeria’s FX framework remains resilient and capable of adapting to changing economic conditions.
It also reminded banks and FX dealers to stick to the rules laid out in the Nigeria FX Market Code and to maintain high standards in their dealings with customers and other market players.
It states: “The CBN continues to monitor global and domestic market conditions and remains confident in the resilience of Nigeria’s foreign exchange framework, which is designed to adjust appropriately to evolving fundamentals.
All Authorised Dealers are reminded to adhere strictly to the principles outlined in the Nigeria FX Market Code and to uphold the highest standards in their dealings with clients and market counterparties.”
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