By Ebiere Kekeboro
The Central Bank of Nigeria (CBN) has injected $197.71 million into the foreign exchange market, as part of its efforts to ensure adequate liquidity and maintain orderly market functioning.
This move was disclosed in a statement by the Director of the Financial Markets Department, Dr. Omolara Omotunde-Duke, on Saturday.
According to the statement, the CBN facilitated market activity on Friday, April 4, 2025, with the provision of $197.71 million through sales to authorized dealers. This intervention aims to foster a stable, transparent, and efficient foreign exchange market.
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The CBN noted that its decision to boost liquidity in the foreign exchange market came against the backdrop of significant shifts in the global macroeconomic landscape. The recent introduction of new import tariffs by the United States on goods from several economies has triggered adjustments across global markets.
Crude oil prices, a major revenue source for Nigeria, have dropped by over 12% to approximately $65.50 per barrel. This downturn poses challenges for oil-exporting countries, influencing exchange rate dynamics and market sentiment.
The CBN stressed that it will continue to monitor both global and domestic market conditions. The bank expressed confidence in the resilience of Nigeria’s foreign exchange framework, which is designed to adjust appropriately to changing economic fundamentals.
Meanwhile, Nigeria’s official exchange rate fell to N1,600/$1 at the end of trading on April 4, 2025. Data from the CBN showed that the naira closed at N1,600/$1, marking a 1.9% depreciation compared to the N1,569/$1 recorded the previous day.
The exchange rate has now weakened by 3.9% in the first four days of April, after closing March at N1,537/$1. The intra-day highs and lows were reported as N1,625 and N1,519 to the dollar, respectively.
The CBN urged all authorized dealers to strictly adhere to the principles outlined in the Nigerian Foreign Exchange Market Code, promoting transparency and upholding the highest standards in their transactions with clients and market counterparties.