FX.co ★ Naira Under Pressure, CBN Moves to Stabilize FX Market

Nigeria's central bank has injected close to $200 million into the market to bolster the naira, following a significant sell-off sparked by President Donald Trump's newly imposed tariffs that unsettled global markets. In a statement released on Sunday, the bank disclosed that on April 4, 2025, the naira plummeted to 1,600 per U.S. dollar in the official window, marking its lowest point in five months due to increased volatility. The Central Bank of Nigeria (CBN) attributed this pressure to declining crude oil prices resulting from the tariffs, highlighting the new challenges this shift presents for oil-exporting nations like Nigeria. As the leading oil producer in Africa, Nigeria relies on crude oil for a staggering 90% of its foreign exchange earnings. In reaction to these developments, the CBN intervened by allocating $197.71 million to commercial banks. "This strategic action is consistent with the Bank's overarching goal of maintaining a stable, transparent, and efficient foreign exchange market," the statement noted.