Investors' appetite for Open Market Operations (OMO) bills remained strong in September despite declining yields, with experts attributing the trend to relatively high returns, naira stability, broader market participation, and excess liquidity in the financial system. OMO is a tool used by the Central Bank of Nigeria to control the supply of money in the economy by selling bills to investors to withdraw excess money from circulation. The CBN received N12.14 trillion in subscriptions across two OMO auctions held on September 24 and 29, against N3.4 trillion offered, according to an analysis of the auction results. The CBN is both the issuer of OMO bills and the institution that uses them as a monetary policy tool.
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