Following the effect of the Trump tariffs on Nigeria’s economy, the Central Bank of Nigeria (CBN) has stepped in to stabilize the foreign exchange market by selling $197.71 million.
This action is intended to alleviate the impact of the tariffs on the naira’s exchange rate and the general economic stability.
The Central Bank of Nigeria plays a vital role in maintaining the stability of the naira relative to key international currencies, notably the US dollar, and in averting possible economic disruptions.
Through infusing liquidity into the forex market, the CBN aims to sustain investor trust and foster economic expansion.
As per a declaration endorsed by Dr. Omolara Omotunde Duke, who serves as the Director of the Financial Markets Department at the Central Bank of Nigeria (CBN), the institution affirmed its dedication to maintaining sufficient liquidity and promoting stable market operations. To this end, they supported marketplace activities on April 4, 2025, by supplying $197.71 million to authorized participants via transactions.
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This carefully considered measure is in line with the Bank’s overarching aim to promote a stable, clear, and efficient foreign exchange market.
“The Central Bank of Nigeria keeps an eye on both international and local market situations and maintains confidence in the robustness of Nigeria’s foreign exchange system, which is structured to adapt effectively to changing economic factors,” the statement highlighted.
The top financial regulatory body also mentioned that it observed fluctuations in the currency market from April 3 to 4, 2025, which mirror larger global economic trends impacting numerous emerging and developing economies at present.
As mentioned, these changes were prompted by the US government’s recently announced new import tariffs on goods coming into the country from multiple economic regions. This has led to an ongoing process of adaptation within various international marketplaces.
The price of crude oil has similarly declined, dropping more than 12 percent to around $65.50 per barrel, which introduces fresh challenges for oil-exporting nations like Nigeria.
“All Authorized Dealers are advised to rigorously follow the guidelines set forth in the Nigeria Foreign Exchange Market Code and maintain the utmost integrity when interacting with clients and fellow market participants,” the bank said.
On Thursday, the naira experienced a significant decline against the dollar in the official forex market, following an announcement from U.S. President Donald Trump, who raised global trade tariffs by 10 percent the previous day.
Following trades on Thursday, the naira dropped by N20.75 or 1.3% against the dollar, with the exchange rate standing at N1,552.53 versus N1,531.25 recorded on Wednesday at the Nigerian Foreign Exchange Market (NFEM), as per data provided by the Central Bank of Nigeria (CBN).
In the parallel market, the naira likewise weakened against the dollar, dropping by N5 to end at N1,560 compared to the previous closing of N1,555 from Wednesday.
Nigeria’s total external reserves decreased by 0.3% to $38.17 billion as of April 2, 2025, down from $38.30 billion noted on March 28, 2025, according to CBN data.
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