CBN Injects $197.71m into FX Market to Boost Liquidity, Stability

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The Central Bank of Nigeria (CBN) has reinforced its commitment to maintaining a stable foreign exchange (FX) market by injecting $197.71 million on Friday, April 4, 2025. The intervention aims to ensure sufficient liquidity and smooth market operations amid global economic fluctuations.

In a statement released on Saturday, Dr. Omolara Omotunde Duke, Director of the Financial Markets Department, reiterated the Bank’s dedication to transparency and market integrity.

“In line with our mandate to promote liquidity and orderly market functioning, the CBN supplied $197.71 million to Authorized Dealers on Friday. This measured step supports our broader goal of a stable, transparent, and efficient FX market,” the statement read.

The CBN highlighted that the intervention aligns with its strategy to sustain market stability while adapting to evolving economic conditions.

The Bank remains vigilant in monitoring global and domestic developments, expressing confidence in Nigeria’s resilient FX framework.

Authorized Dealers were also reminded to comply with the Nigeria FX Market Code, ensuring transparency and upholding ethical standards in all transactions.

Global Economic Challenges Impact Nigeria
The move comes amid significant shifts in the global economy, particularly affecting Emerging Market and Developing Economies (EMDEs). Recent U.S. import tariff hikes have triggered market adjustments, while a 12% decline in crude oil prices —now at $65.50 per barrel—poses challenges for oil-dependent nations like Nigeria.

The CBN assured continued efforts to stabilize the FX market, safeguarding Nigeria’s economy against external pressures.