Business & Economy
CBN Intervenes with $197.71m Forex Sales to Counteract US Tariff Impacts
- The US tariffs which took effect on Wednesday, affect numerous countries, including Nigeria and several other African nations
- The CBN says it remains committed to monitoring both domestic and global market conditions
- Georgieva urged the United States and its trading partners to work constructively toward resolving trade tensions and reducing uncertainty in the global market.
In response to the recent tariff hikes imposed by the United States on various countries, including Nigeria, the Central Bank of Nigeria (CBN) has taken decisive action to stabilize the foreign exchange market.
Eko Hot Blog gathered that by providing $197.71 million in sales to authorized dealers, the bank aims to counteract the potential economic impact of these tariffs and maintain stability within the market.
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The CBN says it remains committed to monitoring both domestic and global market conditions, emphasizing the resilience of Nigeria’s foreign exchange framework in adapting to evolving fundamentals
In a statement released on Saturday by Director of the Financial Market Department Omolara Omotunde Duke, has called on all authorized dealers to adhere strictly to the principles outlined in the Nigeria FX market code.
The bank emphasizes the importance of maintaining the highest standards in dealings with clients and market counterparties amidst the recent US tariff hikes, which have had a significant impact on the foreign exchange market.
The CBN has acknowledged the broader global macroeconomic shifts affecting several emerging markets and developing economies, including Nigeria, as a result of the US tariff increases
Part of the CBN statement reads: “The Central Bank of Nigeria (CBN) has noted recent movements in the foreign exchange market between April 3 and 4, 2025, reflecting broader global macroeconomic shifts currently affecting several emerging market and developing economies.
“These developments were a result of the recent announcement of new import tariffs by the United States government on imports from several economies, which has triggered a period of adjustment across global markets.
“Crude oil prices have also weakened, declining by over 12% to approximately $65.50 per barrel, presenting new dynamics for oil-exporting countries such as Nigeria.”
Recently, United States President Donald Trump imposed a series of import tariffs on goods entering the US. These tariffs, which took effect on Wednesday, affect numerous countries, including Nigeria and several other African nations.
In response to the tariff hikes imposed on several nations, International Monetary Fund (IMF) Managing Director Kristalina Georgieva has expressed concerns over the potential risks to the global economy.
In a statement released on Friday, Georgieva acknowledged that the IMF is currently assessing the macroeconomic implications of the measures, emphasizing the need for a comprehensive evaluation of the situation.
“We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth. It is important to avoid steps that could further harm the world economy,” she said.
Georgieva urged the United States and its trading partners to work constructively toward resolving trade tensions and reducing uncertainty in the global market.
“We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty,” she added.
The World Trade Organization (WTO) has joined the chorus of concern over the US tariff hikes, with Director-General Ngozi Okonjo-Iweala warning that the measures could lead to a contraction of around one percent in global merchandise trade volumes in 2025.
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“I’m deeply concerned about this decline and the potential for escalation into a tariff war with a cycle of retaliatory measures that lead to further declines in trade,” Reuters quoted Okonjo-Iweala as saying in a statement.
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