In a strategic move to stabilize the foreign exchange (FX) market, the Central Bank of Nigeria (CBN) has injected $197.71 million into the market. This intervention aims to enhance liquidity and provide support as global financial markets adjust to the recent imposition of tariffs by U.S. President Donald Trump.
Trump’s administration recently imposed a 14% import tariff on products from Nigeria, creating uncertainty and driving the naira’s value lower against the dollar. This development, coupled with other global macroeconomic shifts, prompted the CBN to step in to stabilize the FX market.
CBN’s Director of Financial Markets Department, Omolara Duke, highlighted that the tariff imposition and a drop in crude oil prices—falling over 12% to approximately $65.50 per barrel—have put pressure on Nigeria’s economy, as the country is a major oil exporter. This new phase of adjustment, observed between April 3 and 4, 2025, has seen ripple effects in the FX market.
To ensure adequate liquidity, the CBN facilitated market activity on April 4 by providing the $197.71 million to Authorized Dealers. Duke emphasized that this intervention is in line with the bank’s commitment to maintaining a stable, transparent, and efficient foreign exchange market.
The CBN also reiterated its focus on sustaining market order amidst evolving global and domestic conditions, reassuring that Nigeria’s FX framework is resilient enough to adapt to these challenges. Authorized Dealers were reminded to uphold the highest standards in their dealings, ensuring the integrity of the market during this period of adjustment.
