The Central Bank of Nigeria (CBN) has concluded the successful sale of government securities, issuing N1.053 trillion (equivalent to 680 million dollars) in short-term instruments as part of its liquidity management efforts.
According to a statement by CBN’s Acting Director of Corporate Communications, Mrs. Hakama Sidi, the apex bank’s N500 billion offer at the Open Market Operations (OMO) auction was oversubscribed, with a total sale of N1.053 trillion. Foreign investors accounted for 79 percent of the bids, amounting to 530 million dollars.
This auction followed last week’s Monetary Policy Committee (MPC) meeting, which included a virtual session with foreign portfolio investors. During these meetings, CBN Governor Olayemi Cardoso outlined strategies to address inflation, stabilize the exchange rate, and boost confidence in the banking system and the economy.
Sidi emphasized the increased confidence investors have in the CBN, indicating that the bank’s monetary policy measures are starting to yield positive results.
In discussions with investors, Cardoso projected sustained growth in CBN’s foreign currency reserves and assured them of enhanced liquidity in the foreign exchange market, along with the prompt settlement of genuine foreign exchange transactions.
Cardoso reiterated CBN’s commitment to supporting price stability by ensuring sustainable liquidity in the foreign exchange markets and fostering a functional market conducive to investor participation.
