The Central Bank of Nigeria, CBN, says it has concluded the sale of government securities, issuing N1.053 Trillion($680 million) in short-term instruments as part of its liquidity management exercise.
At the weekend, the CBN offered N500 Billion at the Open Market Operations (OMO) auction and oversubscribed, selling N1.053 Trillion, with 79 per cent of the total bids, or the equivalent of $530 million, coming from foreign investors.
The Bank’s Acting Director of Corporate Communications Department, Hakama Sidi Ali, said the development underscored the confidence the Bank now enjoys from investors.
She also said the Management of the CBN was optimistic that its monetary policy measures were beginning to yield positive results.
Recall that CBN had unveiled plans to sell N1.64 trillion worth of Treasury Bills in the second quarter of 2024.
The auction was the first since the CBN’s 293rd Monetary Policy Committee meeting, which was followed by a virtual meeting with foreign portfolio investors.
CBN Governor, Olayemi Cardoso, detailed a strategy to curb inflation, stabilise the exchange rate and spur confidence in the banking system and economy.
Cardoso further highlighted in the meeting with investors an outlook for sustained increases in the CBN’s foreign currency reserves, improved liquidity in the foreign exchange market, and imminent settlement of the remaining backlog of genuine Foreign Exchange transactions by the Central Bank of Nigeria.
“The CBN is committed to supporting price stability by taking the necessary measures to sustainably increase liquidity in the foreign exchange markets.
“Our focus is on building a fully functioning market that allows smooth entry and exit for investors,” he stated.
