Kelvin Bowoto
The Central Bank of Nigeria (CBN) has successfully completed the sale of government securities following the issuance of N1.053 trillion (680 million USD) in short-term notes.
Mrs. Hakama Sidi-Ali, Acting Director of the CBN’s Corporate Communications Department, stated on Sunday night that the sale was part of the bank’s liquidity management strategy.
Sidi mentioned that the apex bank’s N500 billion offer at the Open Market Operations (OMO) auction was oversubscribed after selling N1.053 trillion, with foreign buyers accounting for 79 percent of the total bids, or 530 million dollars.
According to the News Agency of Nigeria (NAN), this auction was the first since last week’s Monetary Policy Committee (MPC) meeting, which was followed by a virtual meeting with international portfolio investors.
Sidi mentioned that CBN Governor Olayemi Cardoso utilized both sessions to develop a specific strategy for reducing inflation, stabilizing the exchange rate, and boosting trust in the banking system and the economy.
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She stated that the development demonstrated the level of investor confidence in the apex bank and that CBN management was confident that its monetary policy initiatives were beginning to generate positive outcomes.
Meanwhile, Cardoso stated during the investor meeting that the CBN’s foreign currency reserves are expected to rise steadily.
He told them that the foreign exchange market’s liquidity had improved and that the remaining backlog of real foreign currency transactions would be settled soon.
“The CBN is dedicated to promoting price stability by taking the necessary steps to improve liquidity in foreign exchange markets in a sustainable manner.
“Our focus is on building a fully functioning market that allows smooth entry and exit for investors,” he stated. (NAN)
Techrectory with Agency Report.
