As Crude Oil Slumps by 12%, CBN Injects $197 Million into Forex Market
The Central Bank of Nigeria (CBN) has injected $197.71 million into the foreign exchange market in response to the sharp decline in crude oil prices, which fell by over 12% to $65.50 per barrel following new U.S. trade tariffs that rattled global markets.
The apex bank, in a new circular, said the move was part of efforts to ensure liquidity and maintain stability in the foreign exchange market amid growing pressure on Nigeria’s oil-dependent economy.
Crude oil, which had traded above $75 per barrel on Thursday, is Nigeria’s primary source of foreign exchange earnings, accounting for about 90% of forex inflows. The recent dip, driven by the Donald Trump’s decision to impose fresh import tariffs on several countries, including 14 percent on Nigeria, has sparked concern over Nigeria’s revenue outlook and external reserves.
“The CBN facilitated market activity on Friday, April 4, with the provision of $197.71 million through sales to authorised dealers,” the bank said, noting that the intervention aligns with its commitment to fostering a stable, transparent, and efficient forex market.
The bank added that recent movements in the exchange market reflect global macroeconomic shifts that are currently affecting emerging and developing economies, including Nigeria.
