CBN mops ₦4.11trn in one week via OMO sales

The Central Bank of Nigeria (CBN) has aggressively mopped up ₦4.11 trillion from the banking system within a single week through the sale of Open Market Operations (OMO) bills.

This significant liquidity withdrawal is part of the apex bank’s ongoing strategy to curb soaring inflation and stabilize the Naira by reducing the volume of money in circulation.

The auctions, which saw high subscription levels from both domestic and foreign institutional investors, featured attractive yields across various tenors.

Financial experts note that this intensive mop-up exercise underscores the CBN’s commitment to a hawkish monetary policy stance.

By tightening liquidity, the bank aims to discourage speculative attacks on the local currency and redirect capital toward fixed-income instruments.

While the move is expected to support the Naira’s exchange rate in the short term, there are concerns regarding the potential impact on lending rates for the real sector, as banks may face higher costs of funds.