CBN Sells N113.7b Bills via OMO as Overnight Rate Drops to 7%

By Dipo Olowookere

Nigeria’s overnight rate further declined on Thursday, closing at 7 percent from 10.17 percent on Wednesday.

Furthermore, the Open Buy Back (OBB) rate also depreciated today to 6.33 percent from 9.42 percent yesterday.

Business Post reports that the decline recorded by the overnight and OBB rates followed the huge inflows into the money market on Thursday.

Both rates are expected to trend higher on Friday as a result of an anticipation of a retail forex announcement and another round of treasury bills sale by the Central Bank of Nigeria (CBN) via the Open Market Operations (OMO).

At the market today, the apex bank sold bills worth N113.7 billion via OMO.

According to details of the sale released by the CBN, the 112-day bills worth N100 million were sold to traders today, while the 210-day bills valued at N113.6 billion were also sold.