In a bid to stabilize the foreign exchange (FX) market and ensure sufficient liquidity, the Central Bank of Nigeria (CBN) injected $197.71 million on Friday. This intervention was aimed at mitigating volatility in the market, which had been triggered by global economic shifts, including new import tariffs imposed by the United States on several economies.
According to a circular issued by Omolara Duke, the Director of the Financial Markets Department at CBN, the intervention was necessary due to rising uncertainties in the global market. "The movements in the FX market between April 3 and 4, 2025, reflect broader global macroeconomic developments, including the impact of new U.S. tariffs," Duke explained.
These changes in the global financial landscape, compounded by a 12% drop in crude oil prices to around $65.50 per barrel, have exerted additional pressure on oil-exporting countries like Nigeria. The CBN identified the U.S. tariffs as a key factor in these developments, adding to the adjustment period currently faced by many emerging markets.
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In response, the CBN's injection of $197.71 million on April 4, 2025, was designed to cushion the effects of these global shifts. The bank emphasized that the move aligns with its commitment to maintaining liquidity and ensuring the orderly functioning of the market.
"The CBN remains confident in Nigeria's FX framework, which is built to adjust to changing global and domestic conditions," the circular stated, reaffirming the bank's ongoing focus on fostering a stable, transparent, and efficient FX market.
Additionally, the CBN urged all Authorised Dealers to adhere strictly to the Nigeria FX Market Code and maintain high standards in their dealings with clients and market partners.
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