Naira Under Pressure, CBN Moves to Stabilize FX Market

Trading Economics

Nigeria’s central bank has sold nearly $200 million to support the naira, following a sharp selloff triggered by President Donald Trump’s new tariffs that rattled global markets, the bank said on Sunday.

On April 4, 2025, the naira fell to 1,600 per U.S. dollar in the official window—its lowest level in five months—amid heightened volatility.

The Central Bank of Nigeria (CBN) attributed the pressure to falling crude oil prices in response to the tariffs, noting that the shift poses new challenges for oil-exporting countries like Nigeria.

As Africa’s largest oil producer, Nigeria depends on crude oil for 90% of its foreign exchange earnings.

In response, the CBN intervened by selling $197.71 million to commercial banks. “This measured step aligns with the Bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market,” it said in a statement.

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Nigerian Naira Hits Record Low

Trading Economics

Nigeria's naira reached a historic intraday low of 1,655 per USD on the official market, amid dwindling dollar liquidity.

The strain on the local currency market has been exacerbated by increased demand from travelers and importers during the summer holidays, coupled with lower yields on treasury bills offered by the central bank.

Since President Bola Tinubu relaxed restrictions last year, which had kept the naira artificially overvalued to attract foreign investment, the currency has depreciated by about 70% against the dollar.

Meanwhile, Nigeria's government raised $900 million on September 11th through its first domestic sale of dollar-denominated bonds, nearly doubling the targeted amount, as local investors sought high-yielding securities to hedge against currency devaluation.

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Naira Under Pressure, CBN Moves to Stabilize FX Market

Nigerian Naira Hits Record Low

Risk Disclosure