The Central Bank of Nigeria (CBN) has successfully completed the sale of government securities, issuing a whopping N1.053 Trillion ($680 million) in short-term instruments as part of its liquidity management exercise. This move comes as the CBN continues its efforts to stabilize the economy and attract foreign investment.
Over the weekend, the CBN offered N500 Billion at the Open Market Operations (OMO) auction, which was oversubscribed, resulting in the sale of N1.053 Trillion. Impressively, 79 per cent of the total bids, equivalent to $530 million, came from foreign investors. This surge in interest from foreign investors highlights the growing confidence in the CBN and its monetary policies.
Hakama Sidi Ali, the Bank’s Acting Director of Corporate Communications Department, expressed optimism about the positive results of the CBN’s monetary policy measures. The recent auction follows the CBN’s announcement of plans to sell N1.64 trillion worth of Treasury Bills in the second quarter of 2024.
During a virtual meeting with foreign portfolio investors, CBN Governor Olayemi Cardoso outlined a strategy to combat inflation, stabilize the exchange rate, and boost confidence in the banking system and economy. Cardoso also emphasized the CBN’s commitment to increasing liquidity in the foreign exchange market and settling the backlog of genuine Foreign Exchange transactions.
“The CBN is dedicated to supporting price stability and ensuring a fully functioning market that facilitates smooth entry and exit for investors,” stated Cardoso.
With these measures in place, the CBN aims to create a conducive environment for investors and drive economic growth in Nigeria. The successful sale of government securities and the positive response from foreign investors are promising signs of a thriving economy under the CBN’s guidance.
