The Central Bank of Nigeria (CBN) has announced a foreign exchange intervention of $197.71 million into various segments of the FX market, a strategic move aimed at curbing volatility and ensuring liquidity amid global market uncertainties, including new trade tariffs imposed by former U.S. President Donald Trump on Chinese imports.
According to a statement from the apex bank on Friday, the allocation was distributed to authorized dealers in the wholesale sector, as well as the Small and Medium Enterprises (SMEs) and invisibles segments, which include tuition, medicals, and personal travel allowances. The CBN emphasized that the move was in line with its commitment to stabilizing the naira and maintaining a healthy supply-demand balance in the market.
The intervention comes on the heels of fresh tariffs announced by Donald Trump, who recently returned to the political spotlight with pledges to impose up to 60% tariffs on Chinese goods if re-elected. The global markets have since reacted nervously to the potential resurgence of trade wars, prompting central banks in developing economies, including Nigeria, to brace for the possible ripple effects on currency stability, inflation, and capital flows.
Speaking on the intervention, a senior official at the CBN noted that the bank was “closely monitoring” both global economic indicators and local market behavior, especially in light of recent inflationary trends and dwindling foreign reserves.