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CBN attracts $530m in foreign investment through government securities sale

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The Central Bank of Nigeria (CBN) has successfully sold N1.053 trillion ($680 million) worth of government securities as part of its liquidity management exercise.

The sale, which was oversubscribed, saw 79 percent of the total bids, equivalent to $530 million, coming from foreign investors.

The CBN’s Acting Director of Corporate Communications, Mrs Hakama Sidi, confirmed the successful conclusion of the sale in a statement issued on Sunday night. The sale of these short-term instruments is expected to help manage liquidity in the Nigerian economy.

It was gathered that the auction was the first since last week’s Monetary Policy Committee (MPC) meeting, which was followed by a virtual meeting with foreign portfolio investors.

According to Sidi, the CBN Governor, Olayemi Cardoso, used both meetings to set a detailed strategy to curb inflation, stabilise the exchange rate and spur confidence in the banking system and the economy. She said that the development underscored the level of confidence the apex bank now enjoyed from investors, adding that the management of CBN was optimistic that its monetary policy measures were beginning to yield positive results.

Meanwhile, Cardoso highlighted in the meeting with investors an outlook for sustained increase in the CBN’s foreign currency reserves.

He assured them of improved liquidity in the foreign exchange market and imminent settlement of the remaining backlog of genuine foreign exchange transactions.

“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 said.

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