CBN Executes N1.51 Trillion Mop-Up in Four Months for Economic Stability

“CBN Issues N1.5 Trillion in OMO Bills Under Governor Olayemi Cardoso to Tackle Inflation and Support Naira”
An analysis by Business Day reveals that the Central Bank of Nigeria (CBN) has issued a total of N1.5 trillion in Open Market Operation (OMO) bills since Olayemi Cardoso assumed office as governor. This move aims to curb inflation and stabilize the naira amidst its significant depreciation, which has caused economic instability. Most bids were for long-tenured bills ranging from 180 to 365 days maturity. Despite six auctions held during Cardoso’s tenure, only five auctions contributed to the N1.5 trillion raised, as the December 22, 2023 auction saw no sales due to high investor bids. Additionally, there were discretionary bids in November. Notably, the International Monetary Fund (IMF) recently recommended that the CBN issue OMO bills worth up to N2 trillion within 12 months to mitigate excess liquidity in the economy.