In a move to stabilize the foreign exchange market and ensure adequate liquidity, the Central Bank of Nigeria (CBN) on Friday, intervened by injecting US$197.71 million through sales to Authorized Dealers.
CBN Director, Financial Markets Department, Omolara Duke in a circular at the weekend, said that the intervention was necessary due to increased volatility in global financial markets, following the United States government’s recent imposition of new import tariffs on several economies.
According to the CBN, Friday’s market intervention is part of its broader strategy to promote an orderly, transparent, and efficient FX market.
The bank emphasised its commitment to safeguarding the Nigerian economy from external shocks and maintaining confidence in the nation’s monetary system.
“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.
“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.
“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 document read.
The apex bank also reminded all Authorized Dealers to strictly adhere to the Nigeria FX Market Code and maintain high standards in their interactions with clients and market counterparties.
