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In a Treasury bill sale held on Friday, the Central Bank of Nigeria (CBN) successfully attracted $530 million from Foreign Portfolio Investors (FPIs) out of the N1.053 trillion worth of Treasury bills offered.
The Open Market Operations (OMO) auction saw the CBN initially offering N500 billion, but due to oversubscription, the total sales reached N1.053 trillion. Foreign investors accounted for 79% of the total bids, equivalent to $530 million.
This auction marked the first since the CBN’s Monetary Policy Committee meeting, which was followed by a virtual session with foreign portfolio investors. During these meetings, CBN Governor Mr. Olayemi Cardoso outlined a comprehensive strategy to combat inflation, stabilize the exchange rate, and instill confidence in the banking system and the overall economy. Mr. Cardoso also shared positive expectations, including sustained increases in the CBN’s foreign currency reserves, enhanced liquidity in the foreign exchange market, and the impending settlement of the remaining backlog of legitimate foreign exchange transactions by the central bank.
He emphasized the CBN’s commitment to supporting price stability through measures aimed at sustainably increasing liquidity in the foreign exchange markets. “Our focus is on building a fully functioning market that allows smooth entry and exit for investors,” he added.
In a statement to journalists in Abuja over the weekend, Mrs. Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at the CBN, highlighted the level of confidence the bank now enjoys from investors. She expressed optimism that the monetary policy measures implemented by the CBN were beginning to yield positive results.
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