The Central Bank of Nigeria (CBN) on Tuesday conducted another round of Open Market Operation (OMO) auctions as part of efforts to mop up excess liquidity in the financial system. The auction drew strong interest from both foreign portfolio investors (FPIs) and deposit money banks (DMBs), following two consecutive under-allotments by the apex bank since Friday.
According to market reports, the CBN offered OMO bills worth N600 billion for subscription on Tuesday, amid rising liquidity levels in the banking sector, estimated to have exceeded N6 trillion following previous settlements.
Tuesday’s auction marked the third OMO exercise by the CBN since resuming liquidity management operations last week after a period of inactivity. The offer attracted robust participation, with total subscriptions hitting N4.4 trillion, surpassing demand recorded in the previous auctions on Friday and Monday.
Out of the total bids, the CBN allotted N3 trillion, with stop rates set at 19.45% and 19.49% for the 168-day and 196-day tenors, respectively.
A day earlier, on Monday, investors submitted bids totaling N3.32 trillion, from which the CBN allotted N998.1 billion. At last week’s auction, the bank raised N98 billion, rejecting about 97% of total bids received.
Market analysts said the surge in demand reflects renewed appetite for naira-denominated assets, buoyed by attractive yields and the apex bank’s sustained liquidity-tightening measures.
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