CBN pumps $197.71m into FX Market as Naira falls to N1,600/$1

The Central Bank of Nigeria (CBN) has injected $197.71 million into the foreign exchange market to boost liquidity and support the stability of the naira.

The intervention took place on Friday, April 4, 2025, and was confirmed in a statement on Saturday by Dr. Omolara Omotunde-Duke, Director of the Financial Markets Department.

Dr. Omotunde-Duke explained that the move was part of the CBN’s efforts to maintain an orderly and transparent FX market. “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 authorised dealers,” she said.

The apex bank noted that the decision to intervene was driven by recent global economic changes, including new import tariffs introduced by the United States, which have disrupted markets worldwide. In addition, crude oil prices—a major source of Nigeria’s income—have dropped by over 12%, now trading at about $65.50 per barrel. This decline has added pressure to oil-dependent economies like Nigeria.

Despite these challenges, the CBN expressed confidence in the country’s foreign exchange system, assuring that it would continue to monitor the situation and take appropriate action when necessary. It also urged authorised dealers to comply strictly with the Nigerian FX Market Code to ensure fairness and transparency in their operations.

Meanwhile, the naira weakened further in the official market, closing at N1,600/$1 on April 4, a 1.9% drop from N1,569/$1 the previous day. This marks the weakest level for the naira since December 4, 2024, when it stood at N1,608/$1.

Data also showed that the currency has depreciated by 3.9% in just the first four days of April, after ending March at N1,537/$1. During trading on Friday, intra-day rates fluctuated between N1,519 and N1,625 to the dollar, reflecting high volatility. The average rate, known as the NFEM rate, settled at N1,567—the lowest so far this year.

The figures suggest continued pressure on the naira despite the CBN’s efforts to support the market through dollar injections.