Foreign Portfolio Investors, or FPIs, contributed $530 million to the Central Bank of Nigeria (CBN) on Friday during the auction of Treasury bills valued at N1.053 trillion.
At the Open Market Operations (OMO) auction, the CBN offered N500 billion and sold N1.053 trillion after it was oversubscribed. Foreign investors accounted for 79% of the total bids which is equal to $530 million.
The auction on Friday was the first since the CBN's Monetary Policy Committee met, which was followed by a virtual meeting with international portfolio investors.
During both sessions, Mr. Olayemi Cardoso, the governor of the CBN, established a comprehensive plan aimed at reducing inflation, maintaining exchange rate stability, and boosting trust in the banking sector and overall economy. During the investor meeting, Mr. Cardoso also emphasised the prognosis for further growth in the CBN's foreign exchange reserves, increased market liquidity, and the central bank's prompt settlement of the remaining backlog of genuine foreign exchange transactions.
He said, the CBN is dedicated to promoting price stability by making the required adjustments to boost foreign exchange market liquidity in a sustainable manner. The goal is to create a fully operational market that facilitates investors' easy entry and exit.
The Bank's Acting Director of Corporate Communications, Mrs. Hakama Sidi Ali, said in an interview with media in Abuja over the weekend that the development demonstrated the degree of investor trust the Bank currently possessed. She said that the CBN's management was hopeful that its monetary policy initiatives were starting to have a good impact.
