CBN Auctions N600bn OMO Bills, Raises N1.9trn
The Central Bank of Nigeria (CBN) sold N1.9 trillion in Open Market Operation (OMO) bills to investors on Tuesday as part of its strategy to reduce excess liquidity in the financial system.
Money market data indicated that the financial system is flooded with excess funds, ahead of inflows from anticipated OMO bill repayments, bond coupons, and expired Treasury bills.
Despite being robust, system liquidity decreased by 7.16% to N3.57 trillion. This decline was influenced by a 4.90% reduction in Standing Deposit Facility balances, which fell to N3.47 trillion, and a 12.06% drop in the opening balances of banks with the CBN.
As a result of these lower liquidity levels, the overnight interest rate increased by 7 basis points to 22.23%, while the open repo rate remained steady at 22.00%.
On Tuesday, the CBN held an OMO auction. The authority offered a total of N600 billion across the 7-day, 91-day, and 140-day tenors. Total subscriptions reached N2.2 trillion, leading to an allocation of N1.9 trillion. T
he stop rates for the bills were set at 21.90%, 19.87%, and 19.91%, respectively. Dangote, Banks Stocks Drive Momentum in Nigerian Bourse
