CBN moves against inflation, mops up N200bn in special OMO

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In its latest move to further rein in inflation, the Central Bank of Nigeria (CBN) has unveiled plans to mop up N200.322 billion from the Nigerian banking system through a special Open Market Operation (OMO) at the rate of 16 per cent per annum.
Rising from a meeting of the Bankers’ Committee in Lagos on Thursday, the CBN said its decision to mop up liquidity was in reaction to the maturity of N206 billion on Thursday.
Disclosing this to newsmen, the Bank’s Acting Director in charge of Corporate Communication, Isaac Okorafor, further explained that the apex Bank decided on the rate of 16% per annum due to the falling rate of inflation, which he noted will continue to fall.
It will be recalled that the Bank on June 12 released its Treasury Bills Issue Programme for the third quarter of 2017 in which it disclosed that the maturity dates for the various tenors will be June 15, June 22, July 6, July 20, August 3, August 17 and August 31, 2017, respectively.