The Central Bank of Nigeria (CBN) has announced the successful conclusion of a sale of government securities, issuing N1.053 Trillion (US$680 million) in short-term instruments as part of its liquidity management exercise.
CBN sells N1.053 trillion in government securities in successful auction
This auction, held on March 1, 2024, saw investors oversubscribe to the offerings, demonstrating robust demand for the securities.
At the Open Market Operations (OMO) auction, the CBN initially offered N500 Billion, but the response exceeded expectations, resulting in the sale of N1.053 Trillion.
Notably, 79% of the total bids, equivalent to US$530 million, came from foreign investors, reflecting their confidence in Nigeria’s economic prospects.
The auction marked the first since the CBN’s recent Monetary Policy Committee meeting, which was followed by a virtual engagement with foreign portfolio investors.
During these discussions, CBN Governor, Mr. Olayemi Cardoso, outlined a comprehensive strategy aimed at curbing inflation, stabilizing the exchange rate, and bolstering confidence in the banking system and economy.
Governor Cardoso emphasized the CBN’s commitment to supporting price stability through measures to increase liquidity in the foreign exchange markets sustainably. He also assured investors of ongoing efforts to enhance the functioning of the market, facilitating smoother entry and exit for investors.
Commenting on the successful auction, CBN spokesperson Hakama Sidi Ali noted the level of confidence the Bank now enjoys from investors.
The management of the CBN expressed optimism that its monetary policy measures are yielding positive results, as evidenced by the strong participation in the auction and continued interest from foreign investors.
