To cushion the distortion triggered in the global foreign exchange market as a result of the recent announcement of various tariffs imposed on imports by the United States government, the Central Bank of Nigeria (CBN) said on Friday it took steps to ensure adequate liquidity to support orderly market functioning.
The Director, Financial Markets Department of the CBN, Omolara Duke, said the apex bank facilitated market activity on Friday, April 4, 2025, with the provision of $197.71 million through FX sales to authorized dealers.
Duke said this measured step by the Bank was not only in line with its commitment to ensuring adequate liquidity to support orderly FX market functioning, but it aligns with the broader objective of fostering a stable, transparent, and efficient foreign exchange market.
Last week, the U.S. government rolled out various tariff regimes of between 10 and 35 percent on imports of its goods and services by consumers from various economies.
The announcement triggered massive 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.
The CBN said these developments resulted in a period of adjustment
across global markets, with crude oil prices declining by over 12 percent to approximately $65.50 per barrel.
The decline, the apex bank noted, presented new dynamics for oil-exporting countries such as Nigeria, in terms of revenue inflows from crude oil exports which remains the mainstay of the country’s financial earnings.
Despite steps to stabilise the market, the CBN said it would continue to monitor global and domestic market conditions to guide its further interventions.
“We remain confident in the
resilience of Nigeria’s foreign exchange framework, which is designed to adjust appropriately to evolving fundamentals,” the Director said.
She reminded all authorized FX dealers 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.
