CBN mops up N200bn in special OMO to rein inflation

by | June 16, 2017 5:20 am

In its latest move to further rein inflation, the Central Bank of Nigeria (CBN) has unveiled plans to mop up a total of N200.322 billion from the Nigerian banking system through a special Open Market Operation (OMO) at the rate of 16 percent per annum.
Rising from a meeting of the Bankers’ Committee in Lagos yesterday, the CBN said its decision to mop up liquidity was in reaction to the maturity of N206 billion on Thursday, June 15, 2017.
Disclosing this to newsmen, the bank’s acting director in charge of corporate communication, Isaac Okorafor, explained that the apex bank decided on the rate of 16 percent per annum due to the falling rate of inflation, which he noted would continue to fall.
It would be recalled that the bank on Monday, June 12, 2017, released its Treasury Bills Issue Programme for the third quarter of 2017 in which it disclosed that the maturity dates for the various tenors would be June 15, June 22, July 6, July 20, August 3, August 17 and August 31, 2017, respectively.
Again, the foreign exchange market recorded another convergence of rates between the investors and exporters window and the black market at N365 per dollar on Thursday.
The investors and exporter forex window, which opened for trading on Thursday at the rate of N372.03k per dollar, closed at N365.07k to the dollar after trading on the same day.
Investigation by BusinessDay at the black markets in Lagos shows that dollar traded at the rate of N365 at the Lagos International Airport and at Apapa.
At the interbank spot market, naira gained 0.15 percent to the dollar, closing at the rate of N305.25 per dollar as against N305.70k quoted the previous day, data from the FMDQ showed.
Over 3,000 Bureau De Change operators on Thursday got $20,000 each, which is part of the weekly allocation from the CBN.