CBN explains selling of $197.71m through authorized dealers

The Central Bank of Nigeria (CBN) has noted that the recent movements in the foreign exchange market between April 3 and 4, reflecting broader global macroeconomic shifts currently affecting several Emerging Market and Developing Economies.

According to a statement by the Director, Financial Markets Department CBN, Omolara Omotunde Duke, “These developments was 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”.

Crude oil prices have also weakened – declining by over 12% to approximately US$65.50 per barrel – presenting new dynamics for oil-exporting countries such as Nigeria.

The apex bank further stated that in line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, it facilitated market activity on Friday, April 4, with the provision of US$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.

The CBN says it continues 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 authorized 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.