The Central Bank of Nigeria (CBN) has opened a fresh N1.5 trillion Open Market Operations (OMO) auction as liquidity in the banking system remains elevated.
The auction, scheduled for Tuesday, offers N500 billion each across 154-day, 252-day and 329-day instruments, as the apex bank steps up efforts to absorb excess cash from the financial system. Nairametrics
The latest intervention comes as the Financial Markets Dealers Association (FMDA) projects N2.448 trillion in additional liquidity inflows into the banking system this week, with OMO maturities accounting for N2.298 trillion, or about 93.9 per cent.
Banking-system liquidity stood at N8.505 trillion at the close of trading on November 6, up 15.36 per cent from N7.373 trillion the previous week.
CBN data also showed that banks had N5.915 trillion deposited under the Standing Deposit Facility on November 9, although this was down from N8.311 trillion recorded on November 6 following OMO settlements.
The latest auction is the third conducted by the CBN between November 3 and 10. The apex bank has already allotted about N5.667 trillion through the November 3 and 6 auctions, compared with N6.182 trillion allotted throughout October.
At the November 3 auction, the CBN allotted N2.95 trillion from N3.52 trillion subscriptions, while the November 6 auction attracted N5.74 trillion in subscriptions and resulted in N2.72 trillion in allotments.
The CBN’s aggressive liquidity-management operations are coming as the FMDA projects total liquidity inflows of about N13.79 trillion for November.
