The Central Bank of Nigeria (CBN) has injected $197.71 million into the foreign exchange (FX) market on Friday, April 4, 2025, as part of its ongoing commitment to ensuring adequate liquidity and maintaining orderly market functioning.
This is according to a statement on Saturday by Dr Omolara Omotunde Duke, Director of the Financial Markets Department, reiterating the Bank’s stance on maintaining market integrity and operational transparency.
The statement read, “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. This measured step aligns with the Bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market.”
According to the CBN, this strategic intervention aligns with the Bank’s broader objective of fostering a stable, transparent, and efficient FX market.
The CBN remains focused on sustaining liquidity levels to support smooth market operations amid ongoing global economic adjustments.
Global economic context
The decision to bolster liquidity in the FX market comes against the backdrop of significant shifts in the global macroeconomic landscape, affecting many Emerging Market and Developing Economies (EMDEs), including Nigeria.
The recent introduction of new import tariffs by the United States on goods from several economies has triggered adjustments across global markets.
Notably, crude oil prices—a key revenue source for Nigeria—have dropped by over 12%, settling at approximately $65.50 per barrel. This downturn poses challenges for oil-exporting countries, influencing exchange rate dynamics and market sentiment.
Maintaining market stability
- The CBN emphasized its continued vigilance over global and domestic market conditions.
- It expressed confidence in the resilience of Nigeria’s foreign exchange framework, designed to adjust appropriately to changing economic fundamentals.
- The Bank also urged all Authorized Dealers to strictly adhere to the principles outlined in the Nigeria FX Market Code, promoting transparency and upholding the highest standards in their transactions with clients and market counterparties.
(Nairametrics)
