Nigeria’s central bank (CBN) injected $197.71 million into the foreign exchange market on Sunday to bolster the naira.
This action followed President Donald Trump’s recently imposed tariffs, which sent tremors through global financial markets.
The CBN acknowledged that the tariffs had triggered a drop in crude oil prices, creating significant challenges for oil-dependent nations like Nigeria.
As Africa’s leading oil producer, Nigeria heavily depends on crude oil exports for the majority of its foreign exchange earnings.
In response to the economic headwinds, the CBN strategically intervened in the forex market.
This sale of nearly $200 million to banks aims to stabilize the national currency amidst the global economic uncertainty.
The Central Bank of Nigeria affirmed that this calculated measure aligns with its overarching goal of cultivating a foreign exchange market characterized by stability, transparency, and efficiency.
The intervention underscores the nation’s commitment to mitigating the adverse effects of international trade policies on its economy.