2 weeks Ago By Abdulwahab Isa
To guarantee the stability of the foreign exchange market in the face of fresh tariff hikes imposed by the United States (US) President, Donald Trump on several countries, including Nigeria, the Central Bank of Nigeria (CBN) has enabled forex market activity with the provision of $197.71 million through sales to authorized dealers. The bank reaffirmed its commitment to continuously monitor both domestic and global market conditions, expressing confidence in the resilience of Nigeria’s foreign exchange framework, which is designed to adjust appropriately to evolving fundamentals.
In a statement issued on Saturday by the Director of the Financial Market Department, Omolara Omotunde Duke, the bank urged all authorized 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 fresh hikes in import tariffs imposed by the United States on several nations, including Nigeria, are taking a toll on the foreign exchange market. The tariff hikes are part of broader global macroeconomic shifts currently affecting several emerging markets and developing economies, the Central Bank of Nigeria clarified in a statement.
Part of the CBN 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 $65.
50 per barrel, presenting new dynamics for oil-exporting countries such as Nigeria.” Recently, President Donald Trump announced a series of import tariffs on goods entering the United States. Nigeria and several other African nations are among the countries affected by the high import tariffs, which were implemented on Wednesday.
In response to the tariff hike, Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva raised concerns, warning that the move poses a “significant risk” to the global economy. In a brief statement released on Friday, Georgieva said that the IMF is currently assessing the macroeconomic implications of the tariff measures. “We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth.
It is important to avoid steps that could further harm the world economy,” she said. Georgieva urged the United States and its trading partners to work constructively toward resolving trade tensions and reducing uncertainty in the global market. “We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty,” she added.
The World Trade Organization (WTO) has also expressed concerns. The Director-General of the WTO, Ngozi Okonjo-Iweala, warned that the new tariffs announced by the United States, along with those introduced at the start of the year, could lead to a contraction of around one percent in global merchandise trade volumes in 2025. “I’m deeply concerned about this decline and the potential for escalation into a tariff war with a cycle of retaliatory measures that lead to further declines in trade,” Reuters quoted Okonjo-Iweala as saying in a statement.
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