By Ogochukwu Isioma
The Central Bank of Nigeria on Friday injected $197.71 million into the foreign exchange market to authorized dealers, in a bid to ease pressure on the Naira, and maintain market stability and liquidity, amid the global shocks arising from the falling oil prices and the new United States’ import tariffs by President Donald Trump.
A statement signed by the apex bank’s Director, Financial Markets Department, Dr. Omolara Omotunde Duke, said the CBN’s action followed noticeable movements in the FX market between April 3 and 4, 2025.
She said the movements were being driven by broader economic shifts affecting several emerging and developing countries, including Nigeria.
Duke explained further that the intervention was in response to the impact of the ongoing tariff war on the crude oil price and the foreign exchange market.
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.
Despite the turbulence, the central bank insisted Nigeria’s FX framework remains resilient and capable of adapting to changing economic conditions.
It also reminded banks and FX dealers to stick to the rules laid out in the Nigeria FX Market Code and to maintain high standards in their dealings with customers and other market players.
Meanwhile, Nigeria’s official exchange rate fell to N1,600/$1 at the end of trading on April 4, 2025, as the tariffs imposed during the Trump era continued to impact global markets.
Data from the CBN showed that the naira closed at N1,600/$1, marking a 1.9 per cent depreciation compared to the N1,569/$1 recorded the previous day.
The figure also marked the weakest level the naira had reached since December 4, 2024, when it closed at N1,608/$1. The exchange rate has now weakened by 3.9 per cent in the first four days of April, after closing March at N1,537/$1.
According to the CBN, the exchange rate closed at N1,600/$1 on Friday, marking a 1.9 per cent drop from the previous day.
The intra-day highs and lows were reported as N1,625 and N1,519 to the dollar, respectively. The intra-day high of N1,625 is also one of the highest levels recorded this year, indicating that traders priced the naira at significantly weaker levels.
Conversely, the intra-day low of N1,519/$1 suggests that some traders still priced the naira stronger, possibly betting on short-term interventions.
The NFEM rate, which represents the average exchange rate, closed at N1,567, the weakest the naira has traded this year and since December 4, 2024.
