Notably, 79% of the bids, equivalent to US$530 million, came from foreign investors, highlighting the global interest in Nigeria’s financial instruments.
In a significant move towards enhancing liquidity management, the Central Bank of Nigeria (CBN) concluded a successful sale of government securities on Friday, March 1, 2024. The apex bank issued a N1.053 Trillion (approximately US$680 million) in short-term instruments as part of its strategic monetary measures.
The Open Market Operations (OMO) auction, where the CBN offered N500 Billion, witnessed overwhelming demand, resulting in an oversubscription that led to the sale of a total of N1.053 Trillion. Notably, 79% of the bids, equivalent to US$530 million, came from foreign investors, highlighting the global interest in Nigeria’s financial instruments.
This auction marked the first since the recent Monetary Policy Committee meeting, where the CBN Governor, Mr Olayemi Cardoso, laid out a comprehensive strategy to address inflation, stabilize the exchange rate, and instil confidence in both the banking system and the broader economy. This strategic approach was further discussed in a virtual meeting with foreign portfolio investors.
OrderPaper recalled that CBN had during the MPC meeting raised the Monetary Policy Rate (MPR) to 22.75% to mark a substantial adjustment aimed at addressing the persistent inflationary challenges faced by the country.
Cardoso emphasized the commitment to supporting price stability by implementing necessary measures to increase liquidity in foreign exchange markets sustainably. He outlined a vision for a fully functioning market that facilitates smooth entry and exit for investors, promoting a stable and attractive investment environment.
He said “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.”
Speaking to journalists in Abuja over the weekend, Mrs Hakama Sidi Ali, the Acting Director of the Corporate Communications Department at the CBN, expressed satisfaction with the level of confidence the bank now enjoys from investors. She noted that the oversubscribed auction was a testament to the positive impact of the CBN’s monetary policy measures, expressing optimism about the ongoing efforts yielding further positive results.
