Business
CBN to continue liquidity mop-up, says GTI analysts
The Central Bank of Nigeria (CBN) will continue to mop up liquidity from the economy through the Open Market Operations (OMO), analysts from GTI Securities Ltd have stated.
The CBN this week carried out multiple rounds of OMO auction to suppress system liquidity, conducting auctions between Tuesday and Thursday.
“We noticed strong buy interest as bid-to-offer ratio printed at 2.7x. Across different tenors, the CBN offered a total of c.₦348.6 billion, but received bid to the tune of ₦937 billion, of which ₦457.5 billion was allotted,” they mentioned in their Economic & Financial Market Roundup report released on Thursday.
Due to the mop up, overnight (O/N) and collateralize Open-Buy-Back (OBB) rates which closed the previous week at 11.67 per cent and 11.17 per cent respectively rose to close for this week at 14.83 per cent and 14.25 per cent respectively.
“At the short-end; i.e. NIBOR, 30-day, 90-day and 180-day rates closed at 9.8 per cent, 13.18 per cent and 14.76 per cent respectively compared to 10.38 per cent, 12.63 per cent and 14.61 per cent recorded in the previous week,” the report indicated.