The Central Bank of Nigeria (CBN) has sold $197.71 million to authorized dealers. This move, therefore, aims to protect the foreign exchange (FX) market by injecting liquidity.
In a statement on April 5, 2025, the CBN explained that the sale is part of its broader efforts to maintain market stability. According to the statement, signed by Omolara Duke, CBN’s director of financial markets, global economic changes prompted this decision.
Recently, the US imposed sweeping tariffs on imports from several countries, including a 14% tariff on Nigeria. As a result, this tariff hike triggered adjustments in global markets. In response, the CBN acted quickly to shield Nigeria’s FX market from negative effects.
“The Central Bank of Nigeria (CBN) has noted recent movements in the foreign exchange market between April 3 and 4, 2025. These changes, moreover, reflect broader global shifts that are affecting several Emerging Market and Developing Economies,” the statement said.
In addition, crude oil prices have fallen by over 12%. This drop has had a significant impact on Nigeria, which relies heavily on oil exports. Consequently, the CBN sold $197.71 million in FX to authorized dealers on April 4, 2025.
This sale is just one part of the CBN’s ongoing strategy to maintain adequate liquidity in the FX market. Moreover, the bank continues to monitor both global and domestic conditions and will adjust as needed. It remains confident in the strength of Nigeria’s FX framework.
The CBN also reminded dealers to comply with the Nigeria FX market code, ensuring high standards in all dealings. For context, in August 2024, the CBN sold FX worth $876.26 million to banks. Additionally, Nigeria’s net FX reserves reached $23.11 billion in April 2024, the highest in three years.
Article updated 4 days ago. Content is written and modified by multiple authors.
