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    CBN Floats N600bn OMO Bills, Allocates N81bn to Investors

    Ogooluwa AremuBy Updated:No Comments1 Min Read
    CBN Floats N600bn OMO Bills, Allocates N81bn to Investors

    CBN Floats N600bn OMO Bills, Allocates N81bn to Investors

    The Central Bank of Nigeria (CBN) conducted an auction for N600 billion in OMO bills on Monday as part of its strategy to reduce excess liquidity in the financial system.

    The system opened with surplus liquidity, driven by banks’ ongoing placements in the CBN’s Standing Deposit Facility (SDF). As a result of this liquidity, the Nigerian Interbank Offered Rates (NIBOR) saw declines across most maturities.

    The overnight rate fell by 8 basis points to 22.29%, indicating there was substantial liquidity in the banking system despite the N600 billion OMO auction.

    However, money market financing costs showed mixed trends, with the Overnight rate rising by 8 basis points to 22.29%, while the Open Repo rate remained stable at 22.00%.

    The CBN offered N600 billion in OMO bills with maturities of 8, 99, and 113 days. In the end, N81 billion was allocated across these mid-tenored papers at stop rates of 19.35% and 19.69%, respectively.

    #CBN Floats N600bn OMO Bills, Allocates N81bn to Investors CBN to Float OMO Auctions after 60% Bids Rejection

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    Ogooluwa Aremu is a business journalist at MarketForces Africa covering Nigeria's energy sector, macroeconomic policy, African continental affairs, cryptocurrency markets, and foreign exchange developments.His reporting spans Nigeria's oil and gas regulatory landscape, including coverage of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), Nigeria International Energy Summit, and the downstream deregulation reforms reshaping Nigeria's petroleum sector. He also reports general market, Nigeria's fiscal reforms, World Bank and IMF engagements with Nigeria, and President Tinubu's economic policy initiatives.Ogooluwa covers Africa-wide developments through MarketForces Africa's Inside Africa desk, reporting on the African Union summits, continental economic policy, and cross-border developments affecting investment and trade across Sub-Saharan Africa.His cryptocurrency and forex market coverage tracks major digital assets, including Bitcoin, Ethereum, and Ripple, alongside. Nigeria's interbank FX market movements. He has covered major stories, including the African Union's 39th Ordinary Session in Addis Ababa, Nigeria's N6 trillion fuel import savings from deregulation, and the World Bank's assessment of Nigeria's economic reform programme. Ogooluwa Aremu is based in Lagos, Nigeria.

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