2 weeks Ago By Felix Ifijeh, THEWILL
April 05, (THEWILL) – The Central Bank of Nigeria (CBN) has injected $197.71 million to boost market liquidity and stability in the foreign exchange market. A statement signed by Omolara Omotunde Duke, Director, Financial Markets Department, said the measure aligns with the bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market in line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, According to the bank, the boost comes as global markets reel in shock with the tariffs imposed by United States President Donald Trump.
THEWILL reports that Trump, in his pursuit of reciprocity, announced on Wednesday 10% tariffs on imports from all countries and additional duties targeting about 60 nations. It, therefore, urged all authorised dealers to adhere strictly to the principles outlined in the Nigeria FX Market Code and uphold the highest standards in their dealings with clients and market counterparties. The apex bank noted that the development has affected the value of the naira to the dollar as movements in the foreign exchange market between April 3 and 4, 2025 indicated.
Titled “Update on FX Market Developments: April 03-04, 2025”, the statement reads: “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 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% 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. “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.
”.
