CBN Offers 21.84% Interest Rate for 84-Day OMO Bills
The Central Bank of Nigeria (CBN) offered foreign portfolio investors and local deposit money bank participants a 21.84% spot rate on the 84-day OMO bills auction on Tuesday.
The authority floated an OMO bills auction to counter excess liquidity in the money market. The financial system liquidity expanded above N4.6 trillion; this improvement was mainly driven by an inflow of ₦1.4 trillion from expired OMO bills.
The development prompted the CBN to conduct an open market operation where N600.0 billion OMO bills were offered across two maturities, namely the 56-day and 84-day papers.
Demands were robust, as total subscriptions printed at N1.2 trillion, while total sales settled at N273.6 billion, reflecting investors’ sustained demand for the naira assets.
Stop rate for 56 days to maturity OMO bills was priced at 21.69%. The CBN sold 84 days to maturity OMO bills to investors at an interest rate of 21.84%. Zenith Bank Price Target Sets at N81 after Q3 Earnings
