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The Central Bank of Nigeria (CBN) has successfully completed the sale of government securities, issuing N1.053 trillion (equivalent to 680 million dollars) in short-term instruments as part of its liquidity management exercise.
In a statement released on Sunday night by Mrs. Hakama Sidi, the Acting Director of the Corporate Communications Department at the CBN, it was revealed that the apex bank’s N500 billion offer at the Open Market Operations (OMO) auction was oversubscribed. The total sales reached N1.053 trillion, with 79% of the bids, equivalent to 530 million dollars, coming from foreign investors.
This auction, the first since the recent Monetary Policy Committee (MPC) meeting and a subsequent virtual session with foreign portfolio investors, saw CBN Governor Olayemi Cardoso outlining a comprehensive strategy to address inflation, stabilize the exchange rate, and boost confidence in the banking system and the economy.
Mrs. Sidi highlighted that the strong response from investors underscored the growing confidence in the apex bank, and the CBN management is optimistic that its monetary policy measures are yielding positive results.
During the meeting with investors, Governor Cardoso provided an outlook for sustained growth in the CBN’s foreign currency reserves. He assured investors of improved liquidity in the foreign exchange market and the imminent settlement of the remaining backlog of genuine foreign exchange transactions.
“The CBN is committed to supporting price stability by taking the necessary measures to increase liquidity in the foreign exchange markets sustainably. Our focus is on building a fully functioning market that allows smooth entry and exit for investors,” he stated.
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