CBN Boosts FX Market With $197.71 Million Amid Trump Tariffs
The gain comes as global markets are shocked by the tariffs implemented by US President Donald Trump.
The Central Bank of Nigeria (CBN) has injected $197.71 million to increase market liquidity and stability in the forex market.
The gain comes as global markets are shocked by the tariffs implemented by US President Donald Trump.
The American president has placed a 14% import charge on Nigerian items. According to the CBN, the development has had an impact on the naira’s value against the dollar in recent days.
Omolara Duke, Director of the CBN’s Financial Markets Department, said in a statement on Saturday that the apex bank has noted recent movements in the foreign exchange market between April 3 and 4, 2025, reflecting broader global macroeconomic shifts that are currently affecting several emerging and developing economies.
Duke stated that “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 dropped, falling by more than 12% to around US$65.50 per barrel, creating new dynamics for oil-exporting countries like 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 Authorised Dealers.”
On April 2, 2025, US President Donald Trump displays a signed executive order after making speeches on reciprocal tariffs at a “Make America Wealthy Again” event in the Rose Garden of the White House in Washington, DC. (Photo by SAUL LOEB/AFP)
“This measured approach is consistent with the Bank’s overall goal of promoting a stable, transparent, and efficient foreign exchange market. The CBN continues to watch global and domestic market developments and is confident in the robustness of Nigeria’s foreign exchange system, which is structured to respond to changing 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,” according to the official.