The Central Bank of Nigeria sold $197.71 million to banks to protect the FX market from the fallout of new U.S. tariffs and falling oil prices. The move aims to stabilize the naira and maintain liquidity amid global market adjustments. The CBN pledges continued vigilance and market support.
The Central Bank of Nigeria (CBN) has intervened in the foreign exchange market, selling $197.71 million to authorized dealers to boost liquidity and stabilize the naira. The move comes amid global financial turbulence sparked by sweeping tariffs announced by U.S. President Donald Trump, including a 14% duty on Nigerian imports.
In a statement released Saturday and signed by Omolara Duke, director of financial markets, the CBN said the dollar sale was aimed at ensuring a stable, transparent, and efficient FX market. The apex bank cited "recent macroeconomic shifts" following the U.S. tariff decision and declining oil prices — now down more than 12% to around $65.50 per barrel — as major pressures on Nigeria’s economy.
"Global markets are adjusting rapidly, and as an oil-dependent nation, Nigeria faces new challenges," the statement noted. "This intervention demonstrates our commitment to maintaining market order and supporting liquidity."
The CBN emphasized its confidence in Nigeria’s FX market resilience, while urging authorized dealers to strictly follow the Nigeria FX market code and maintain best practices in client transactions.
This latest injection follows a similar FX sale in August 2024, when the CBN supplied $876.26 million to banks. Meanwhile, Nigeria’s net FX reserves recently climbed to $23.11 billion, the highest level recorded in three years.
As global economic conditions continue to shift, the CBN reassured Nigerians that it would keep monitoring the situation closely and act as necessary to protect the country’s financial stability.
