CBN pumps $197.71m into FX market amid Trump tariffs, weak naira

In a bid to steady the sliding naira and ease pressure on Nigeria’s foreign exchange market, the Central Bank of Nigeria (CBN) has injected $197.71 million into the system.

The move follows mounting global tension sparked by fresh import tariffs imposed by U.S. President Donald Trump, which have sent shockwaves through emerging markets. Nigeria, already grappling with a frail currency, has seen the naira trade between N1,500 and N1,600 per U.S. dollar in recent days.

Trump’s administration recently slapped a 14% import tariff on goods from Nigeria—a development that has put additional strain on the naira and rattled market sentiment.

Omolara Duke, Director of the CBN’s Financial Markets Department, said the apex bank observed sharp shifts in currency markets between April 3 and 4, a period marked by broader global economic headwinds impacting developing economies.

“These movements were triggered by the U.S. government’s tariff announcements, which set off market adjustments across several economies,” Duke said in a statement issued Saturday.

She also noted a downturn in crude oil prices—down over 12% to around $65.50 per barrel—adding to Nigeria’s economic pressures as an oil-reliant nation.

“In line with our mandate to maintain liquidity and orderly market conditions, the CBN intervened with a sale of $197.71 million to Authorized Dealers on April 4,” she said.

According to the bank, the intervention reflects its broader strategy to maintain a stable, transparent, and functional FX market. Duke emphasized that the CBN will continue to monitor both domestic and international developments and remains confident in the resilience of Nigeria’s FX framework.

She reminded dealers to comply with the Nigeria FX Market Code and uphold integrity in all market transactions.