Foreign investors have oversubscribed to the Central Bank of Nigeria’s Treasury Bill auction within a very short period.
This piece of information was made known to the public by the Central Bank of Nigeria.
The Central Bank of Nigeria (CBN) has concluded the sale of government securities worth ₦1.053 trillion (680 million dollars) in short-term instruments.
According to a statement issued by CBN’s Acting Director of Corporate Communications Dept, Hakama Sidi.
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Sidi stated that the sale was part of its liquidity management exercise.
The Open Market Operations Auction Was Oversubscribed
She said that the CBN’s ₦500 billion offer at the Open Market Operations (OMO) auction was oversubscribed by investors.
This is after selling ₦1.053 trillion, with 79% of the total bids, or the equivalent of $530 million coming from foreign investors.
The OMO treasury bill auction is the first since last week’s Monetary Policy Committee (MPC) meeting, which was followed by a virtual meeting with foreign portfolio investors.
Both meetings were used to develop a strategy to curb inflation, stabilise the exchange rate, and increase confidence in the banking system.
Sidi said this development shows how confident investors are in the apex bank.
Furthermore, the management of CBN is optimistic that its monetary policy measures are beginning to yield positive results.
CBN Will Offset Forex Backlog
The CBN Governor Olayemi Cardoso showcased an outlook for a sustained increase in the CBN’s foreign currency reserves while meeting with the investors.
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Furthermore, he assured them of improved access to Forex and promised to settle the remaining backlog of genuine Forex transactions.
“The CBN is committed to supporting price stability to increase liquidity in the foreign exchange markets.
“Our focus is on building a fully functioning market that allows smooth entry and exit for investors,” he said.
