The Central Bank of Nigeria (CBN) has shed light on its decision to inject $197.71 million into the foreign exchange (FX) market, a move executed on Friday, April 4, 2025.
The apex bank said the move to inject $197.71 million was aimed at boosting liquidity and ensuring stability in the nation’s forex ecosystem.
The CBN also explained that the move reflects its ongoing commitment to maintaining an orderly and functional market amid evolving economic challenges.
In a statement released on Saturday by the Director of the Financial Markets Department, Dr Omolara Omotunde-Duke, the CBN said the primary motivation behind the $197.71 million injection, is to enhance liquidity in the FX market.
The statement noted that Nigeria’s FX market has faced persistent challenges, including a high demand for dollars that often outpaces supply.
According to the apex bank, this imbalance has fueled volatility in the naira’s value, particularly in the parallel market, where rates can diverge significantly from the official exchange rate.
By injecting $197.71 million, the CBN said it aims to bridge this gap, providing authorized dealers with the resources needed to meet demand and curb speculative trading.
Another reason for the injection is to tackle the lingering forex backlog, the CBN said. The apex bank has been working diligently to clear these obligations, which span sectors like aviation, manufacturing, and petroleum, as part of a broader strategy to restore confidence in the market.
The statement reads in part: “In line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN facilitated market activity on Friday, April 4, 2025, with the provision of $197.71m through sales to authorised dealers. This measured step aligns with the bank’s broader objective of fostering a stable, transparent, and efficient foreign exchange market.”
