The Central Bank of Nigeria (CBN) has announced the successful conclusion of a sale of government securities, generating N1.053 trillion ($680 million) through short-term instruments.
The CBN said the sale, which occurred on March 1, 2024, was part of its liquidity management exercise.
In a statement on Monday, the regulator revealed that the N500 billion offered at the open market operations (OMO) auction was oversubscribed, resulting in the sale of N1.053 trillion. Notably, 79 percent of the total bids, equivalent to $530 million, came from foreign investors.
This auction marked the first since the CBN’s monetary policy committee (MPC) meeting, which included a virtual session with foreign portfolio investors.
During these meetings, CBN Governor Olayemi Cardoso outlined a detailed strategy to combat inflation, stabilize the exchange rate, and enhance confidence in the banking system and economy.
Cardoso emphasized plans for sustained growth in the CBN’s foreign currency reserves, improved liquidity in the foreign exchange (FX) market, and the imminent resolution of outstanding genuine FX transactions.
“The CBN is dedicated to ensuring price stability through sustainable measures to boost liquidity in the FX markets,” stated the governor, emphasizing the aim of fostering a well-functioning market that facilitates smooth investor entry and exit.
Speaking with journalists in Abuja over the weekend, Hakama Sidi-Ali, CBN’s acting director of corporate communications department, said the development underscored the level of confidence that the bank now enjoys from investors.