CBN Reports N930bn Drop in Banking Liquidity

The Central Bank of Nigeria (CBN) reported a decline in banking system liquidity by N930 billion, bringing it down to N3.66 trillion from N6.81 trillion recorded on August 11. This decrease is attributed to the settlement of Treasury Bills auctions.

The overnight lending rate rose by two basis points to 22.20%, compared to 22.18% on August 11, while the Open Buy Back (OBB) rate remained stable at 22.00%. Despite the decline, the liquidity position indicates a surplus, as it stood at N3.66 trillion at the market's opening on Friday.

The CBN has been actively managing liquidity through Open Market Operations (OMO) and Treasury Bills. On August 26, the CBN received N4.26 trillion in subscriptions at its OMO auction, allotting N2.80 trillion, and also saw strong demand for Treasury Bills, with N3.79 trillion in subscriptions against N700 billion offered.

The CBN revised its OMO participation framework to include more investors and lifted the suspension on Tenored Repo Operations.