Home BUSINESS BANKING & FINANCE Foreign Investors Dominate Nigeria’s Open Market Operations With  $530 Million

Foreign Investors Dominate Nigeria’s Open Market Operations With  $530 Million

Foreign Investors were said to have outshined their Nigerian counterparts by committing $530 million in the country’s Open Market Operations (OMO).
A statement by the spokesperson of the Central Bank of Nigeria (CBN), Mrs. Hakama Sidi Ali said that the percentage of the foreign investment is 79 percent.
This fact emerged after the conclusion of the sale of the government securities on March 1, resulting in the issuance of N1.053 Trillion or $680 million in short-term instruments as part of the CBN’s liquidity management exercise.
According to Hakama Sidi Ali, the apex Bank offered N500 billion at the OMO auction, adding that it was oversubscribed, “selling N1.05 Trillion, with 79% of the total bids, or the equivalent of US$530 million, coming from foreign investors.”
She said that the Friday auction was the first since the CBN’s Monetary Policy Committee meeting, which was followed by a virtual meeting with foreign portfolio investors.
According to the spokesperson, the apex Bank boss, Olayemi Cardoso had, at the meetings, set a detailed strategy to curb information, stabilise the exchange rate and spur confidence in the banking system and economy.
“Mr. Cardoso further highlighted in 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 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.”
Speaking with journalists in Abuja at the weekend, Mrs. Hakama Sidi Ali said that the development underscored the level of confidence that the Bank now enjoyed from investors.
She said that the Management of the CBN was optimistic that its monetary policy measures were beginning to yield positive results.

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