CBN Boosts FX Liquidity with N1.053tr Securities Sale
By Patience Ikpeme
The Central Bank of Nigeria (CBN) has successfully sold over N1 trillion of government securities to boost the availability of foreign exchange in the country.
The apex bank aimed to raise N500 billion through short-term instruments but was met with strong demand, resulting in a total of N1.053 trillion being raised.
The auction saw 79 percent of the bids come from foreign investors, indicating increasing investor confidence in the CBN.
The CBN’s strategy aims to tackle inflation, stabilize the exchange rate, and boost confidence in the banking system and the broader economy.
The oversubscribed securities demonstrate the CBN’s commitment to fighting inflation and increasing liquidity in the foreign exchange market through the issuance of government securities.
These measures are starting to yield positive results in the fight against inflation by mopping up excess liquidity through Open Market Operations.
