Foreign investors bought about 79% of the N1.053 trillion (approximately $680 million) bonds the Central Bank of Nigeria (CBN) sold last week, the bank’s official has said.
The rise in [foreign demand] “underscored the level of confidence that the central bank now enjoys from investors,” said CBN spokeswoman Hakama Sidi Ali.
“The CBN is optimistic that its monetary policy measures are beginning to yield positive results,” she said.
This auction marks the first since the recent Monetary Policy Committee (MPC) meeting and a subsequent virtual meeting with foreign portfolio investors.
Sidi Ali noted that 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 also said the development demonstrated the level of confidence that investors now had in the apex bank.
Sidi Ali added that the management of the CBN was optimistic that its monetary policy measures were starting to produce positive outcomes.
Governor Cardoso, during his meeting with investors, projected a sustained rise in the CBN’s foreign currency reserves.
He also reassured investors of improved liquidity in the foreign exchange market and the impending settlement of outstanding 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.
