The Central Bank of Nigeria (CBN) said it successfully concluded the sale of government securities valued at N1.053tr (US$680m) in short-term instruments as part of its liquidity management efforts on Friday, March 1, 2024.

While the apex bank offered N500bn at the Open Market Operations (OMO) auction, it was oversubscribed by 110.6%, selling N1.053tr with 79% of the total bids, or the equivalent of US$530m coming from foreign investors.

Friday’s auction was the first since the CBN’s Monetary Policy Committee meeting, which was followed by a virtual meeting with foreign portfolio investors.

The CBN Governor, Olayemi Cardoso, used both meetings to set a detailed strategy aimed at curbing the inflationary pressure, stabilising the exchange rate, and spurring confidence in the banking system and economy.

Cardoso further highlighted at 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

The CBN, he assured them, “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.”

Addressing journalists in Abuja at the weekend the Acting Director, Corporate Communications Department of the CBN, Mrs. Hakama Sidi Ali explained that the development underscored the level of confidence that the apex bank now enjoyed from investors.

She also said the Management of the CBN was optimistic that its monetary policy measures were beginning to yield positive results.