Financial System Liquidity Surges 19% on OMO Bill Inflow
The financial system’s liquidity increased by about 19% following a large OMO bill repayment, amid a slowdown in banks’ deposits at the Central Bank window.
Broadstreet analysts reported excess liquidity in the banking system advanced on Tuesday, prompting the Apex Bank to float an OMO auction.
Market reports from Meristem Securities Limited indicate that system liquidity increased by 18.90% to NGN5.91 trillion, primarily driven by an OMO repayment of N1.34 trillion, alongside an 18.98% increase in the opening balance.
This inflow was more than offset by the 8.06% decline in banks’ deposits at the Standing Deposit Facility of the Central Bank.
Despite improved liquidity conditions, the overnight rate edged up by 10 basis points to 22.29%, while the overnight repo rate remained unchanged at 22.00%. Yesterday, the Central Bank held an OMO bill auction offering N600 billion across three tenors.
Total subscription for the auction came heavily, and the authority allotted OMO bills worth N2.2 trillion to foreign portfolio investors and deposit money banks, the eligible market players. Stanbic IBTC Hits 52-Week High on Sharp Intraday Rally
