The Central Bank of Nigeria (CBN) revealed the sale of N1 trillion worth of Federal Government securities in a statement issued on Monday by its acting Director of the Corporate Communications Department, Hakama Sidi-Ali.
The CBN stated that the transaction, conducted on March 1, 2024, was part of its ongoing liquidity management efforts.
In the statement, the regulator disclosed that the open market operations (OMO) auction, offering 500 billion, was oversubscribed, with a total sale of 1.053 trillion.
Foreign investors accounted for 79% of the total bids, equivalent to $530 million, indicating significant interest from international markets.
The auction held on Friday marked the first since the CBN’s monetary policy committee (MPC) meeting, followed by a virtual session with foreign portfolio investors.
During these engagements, CBN Governor Olayemi Cardoso outlined a comprehensive strategy to combat inflation, stabilize the exchange rate, and bolster confidence in the banking sector and the overall economy.
Cardoso emphasized the outlook for sustained growth in the CBN’s foreign currency reserves, improved liquidity in the foreign exchange (FX) market, and the imminent resolution of remaining genuine FX transaction backlogs.
“The CBN is committed to ensuring price stability through measures aimed at enhancing liquidity in the foreign exchange markets in a sustainable manner,” stated the governor. “Our primary focus is on fostering a well-functioning market that facilitates seamless entry and exit for investors.”