CBN Attracts $530 Million from FPIs in N1 Trillion Treasury Bill Sales

The Central Bank of Nigeria (CBN) recently attracted $530 million from Foreign Portfolio Investors (FPIs) during a N1 trillion Treasury bill sales event.

This successful auction highlights the growing confidence of foreign investors in the Nigerian financial market and the effectiveness of the CBN’s monetary policy measures.

The auction, which took place on Friday, saw the CBN offering N500 billion at the Open Market Operations (OMO) auction.

The event was oversubscribed, with the bank selling a total of N1.053 trillion in Treasury bills, 79% of which came from foreign investors.

This substantial foreign investment represents a significant boost to the Nigerian economy and demonstrates the increasing appeal of the country’s financial market to international investors.

The auction came shortly after the CBN’s Monetary Policy Committee meeting, which was followed by a virtual meeting with foreign portfolio investors.

During these meetings, CBN Governor Mr. Olayemi Cardoso outlined a detailed strategy to curb inflation, stabilize the exchange rate, and increase confidence in the banking system and the economy as a whole.

Mr. Cardoso also highlighted an optimistic outlook for sustained increases in the CBN’s foreign currency reserves, improved liquidity in the foreign exchange market, and the imminent settlement of the remaining backlog of genuine foreign exchange transactions.

Speaking with journalists in Abuja, the Acting Director of the Bank’s Corporate Communications Department, Mrs. Hakama Sidi Ali, emphasized the importance of this development and the growing confidence of foreign investors in the Nigerian financial system.

She also expressed optimism that the CBN’s monetary policy measures were beginning to show positive results.

This successful Treasury bill sales event marks a turning point for Nigeria’s financial market, as it demonstrates the potential for the country to attract significant foreign investment and stimulate economic growth.

With the continued implementation of effective monetary policies and the growing confidence of foreign investors, Nigeria is poised to become a more prominent player in the global financial market.