CBN Floats OMO Bills Auction, Raises N1.7trn
The Central Bank of Nigeria (CBN) sold OMO bills to investors at the open market operation conducted on Tuesday, amidst robust liquidity in the financial system.
The Apex Bank action was informed by the expectation of N716 billion in OMO repayments, which, if left in the system, would enhance liquidity and drive an increase in credit creation, potentially fueling inflation.
Details from the OMO auction showed that the CBN planned to raise N600 billion, which was the offers made for subscription. The amount on offer was split among Nigerian OMO bills with maturities of 7 days, 105 days, and 140 days.
Yield thirty investors, both banks and foreign portfolio managers, staked about N1.8 trillion, three times the offer size at the auction.
Total subscriptions amounted to N1.8 trillion, according to auction results cited by CardinalStone Securities Limited. Eventually, the CBN sold OMO bills worth about N1.7 trillion at stop rates of 21.90%, 19.85% and 19.91%, respectively. Exchange Rate Falls to N1,380/$ as Naira Sold Off
