CBN Places 19.91% Interest Rate on 138-Day OMO Bill
At the spot rate of 19.91%, the Central Bank of Nigeria (CBN) raised N1.4 trillion through open market operations, during which N600 OMO bills were floated for subscription.
The Apex Bank conducted an OMO bill auction to step down excess liquidity in the financial system, with the overall aim of controlling inflationary pressures.
The offer size, which included 75- and 138-day OMO bills maturities, attracted significant interest amidst elevated.
Total subscriptions amounted to N1.5 trillion. Eventually, the CBN allotted a total of N1.4 trillion only on the 138-day paper at a stop rate of 19.91%, with no sale recorded for the 75-day paper.
The CBN has been aggressive with liquidity mop-up activities since last week. The financial system liquidity had surged near N9 trillion, supported by OMO bill repayments and other related inflows.
To attract foreign currency, the CBN offered higher rates on OMO bills to offshore investors and local deposit money banks. Nigerian Exchange Slides Marginally on Pre-Easter Selloffs
