CBN injects $197.71 million into FX market amidst US import tariff hike

The CBN said it would continue to monitor global and domestic market conditions and remains confident in the resilience of Nigeria’s FX framework.

The Central Bank of Nigeria (CBN) announced on Saturday its decision to inject $197.71 million into the country’s Foreign Exchange (FX) market.

The bank said the action aims to ensure sufficient liquidity and facilitate the orderly functioning of the market in light of the recent increase in import tariffs policy being implemented by the government of the United States of America.

In a statement issued and signed by the apex bank’s Financial Markets Department Director, Omolara Duke, the CBN said the decision aligns with its broader objective of fostering a “stable, transparent, and efficient foreign exchange market.”

“In line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN facilitated market activity on Friday, April 4, 2025, with the provision of $197.71 million through sales to Authorized Dealers,” the statement said.

The CBN said it has observed the recent movements in the foreign exchange market between 3-4 April, and that it reflected broader global macroeconomic shifts currently affecting several Emerging Market and Developing Economies.

Data posted on the CBN website indicated that the naira closed at N1,567/$1 on Friday, marking almost 1 per cent depreciation from the N1,553/$1 recorded on Thursday.

“These developments were as a result of the recent announcement of new import tariffs by the United States government on imports from several economies, which has triggered a period of adjustment across global markets,” the statement said.

Last Wednesday, US President Donald Trump imposed a 10 per cent “minimum baseline tariff” on all imports into the country, with many nations, including Nigeria, facing even higher rates.

Nigeria’s primary exports to the US consist of crude oil, petroleum gas, and nitrogen-based fertilisers—however, the US predominantly ships cars, refined oil products, and wheat to Nigeria.

By implication, the recent policy threatens the trade of Nigerian goods in the US, particularly crude oil, Nigeria’s major export and the lifeblood of the country’s economy.

On Saturday, the CBN noted that Crude oil prices have also weakened, declining by over 12 per cent to approximately $65.50 per barrel. This, the bank said, presents new dynamics for oil-exporting countries such as Nigeria.

The CBN said it would continue to monitor global and domestic market conditions and remains confident in the resilience of Nigeria’s foreign exchange framework, which is designed to adjust appropriately to evolving fundamentals.

“All Authorised Dealers are reminded 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,” the statement said.