By Adanna Nnamani, Abuja
The Central Bank of Nigeria (CBN) injected US$197.71 million into the foreign exchange (FX) market on Friday to stabilise trading and ensure enough liquidity. The move came through sales to Authorised Dealers, as confirmed by a weekend circular from Omolara Duke, CBN Director of the Financial Markets Department.
Duke explained that the intervention tackled rising volatility in global financial markets. This followed new import tariffs imposed by the United States on several economies.
“The Central Bank of Nigeria (CBN) 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,” the circular stated.
The CBN linked these shifts to the U.S. tariffs, which have unsettled global markets. Plus, crude oil prices dropped over 12% to about US$65.50 per barrel, adding pressure on oil-exporting nations like Nigeria.
“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,” the document noted.
To counter this, the CBN supplied US$197.71 million on 4 April 2025. “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 Authorised Dealers,” it said. The bank stressed this step supports its goal of a stable, transparent, and efficient FX market.
Moreover, the CBN expressed confidence in Nigeria’s FX framework. “This measured step aligns with the Bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market. 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,” the circular added.
The bank also urged Authorised Dealers to follow the Nigeria FX Market Code strictly and uphold high standards with clients and market partners.