Mohammed Shosanya
The Central Bank of Nigeria (CBN),has concluded sales of government securities, issuing N1.053 trillion (USS680 million) in short-term instruments as part of its liquidity management exercise.
The apex bank offered #500 Billion at the Open Market Operations (OMO) auction and over subscribed, selling N1.053 Trillion, with 79% of the total bids, or the equivalent of US$ 530 million, coming from foreign investors.
The auction which was concluded last Friday,was the first since the CBN’s Monetary Policy Committee meeting, which was followed by a virtual meeting with foreign portfolio investors.
The CBN’s Governor, Mr. Olayemi Cardoso,sets detailed strategy to curb inflation, stabilise the exchange rate, and spur confidence in the banking system and economy.
He further highlighted in the meeting with investors an outlook for sustained increases in the CBN’s foreign currency reserves, improved liquidity in the foreign exchange market, and imminent settlement of the remaining backlog of genuine Foreign Exchange transactions by the Central Bank of Nigeria .
According to him, “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 added.
The Bank’s Acting Director, Corporate Communications Department, Mrs Hakama Sidi Ali said the development underscored the level of confidence that the bank now enjoyed from investors.
She expressed optimism the bank’s monetary policy measures were beginning to yield positive results.
