CBN injects N5.21trn into banking system in one week
The Central Bank of Nigeria (CBN) pumped a net N5.21 trillion into the banking system over the past week, with a single N2.48 trillion Open Market Operations (OMO) repayment on August 11, the week’s largest one-day liquidity injection.
This is according to the financial data published by the apex bank on Tuesday, August 11 and 4.
The robust liquidity injection comes just a day ahead of the primary market auction today, where the CBN, on behalf of the Debt Management Office (DMO) is targeting to raise N700 billion in Treasury Bills auction.
The N5.21 trillion repayments between August 4 and 11 reflect the scale of OMO and T-bills maturities flowing back into the system just as the CBN resumes Treasury Bills issuance today.
The N2.48 trillion (47.60per cent) repayment on August 11 alone accounted for the bulk of liquidity release in the final days before today’s auction.
CBN executed N2.73 trillion (52.40%) Primary Market Repayments on August 4 (N2.45 trillion) and August 6 (N283.78 billion).
The August 12 auction follows the cancellation of a similarly sized offer on August 5, which was stopped after the CBN withdrew a combined N4.69 trillion through back-to-back OMO auctions on August 3 and 4.
Analysts at Cordros Securities had projected around N1.58 trillion in OMO Bills maturing during the week, though the actual repayment seen in Tuesday’s N2.48 trillion single-day settlement have exceeded that estimate.
