OMO Maturities to Rise 30.67% to N2.94tn as System Inflows Stay Above N3tn
Open Market Operations (OMO) maturities are projected to rise by 30.67 percent to N2.94 trillion this week from N2.25 trillion recorded in the previous week, keeping total estimated financial system inflows above the N3 trillion mark for a second consecutive week.
The projection is contained in the latest liquidity outlook by the Financial Markets Dealers Association (FMDA), which estimates total financial system inflows at N3.02 trillion this week, marginally higher than the N3.01 trillion projected for the previous week.
The expected increase in OMO maturities comes against the backdrop of elevated system liquidity, which settled at approximately N4.7 trillion last week.
The liquidity build-up followed the Central Bank of Nigeria’s (CBN) repayment of N2.49 trillion in Primary Market securities on September 1, providing a significant injection of funds into the financial system.
In response, the CBN conducted aggressive liquidity mop-up operations amounting to N3.745 trillion through the sale of bonds and Treasury Bills on September 1 and 3.
The intervention reflects the apex bank’s continued efforts to manage excess liquidity in the banking system and maintain stability in financial markets.
With OMO maturities expected to account for the bulk of this week’s inflows, market participants are likely to closely monitor the CBN’s liquidity management operations, particularly as the banking system continues to experience elevated liquidity levels.
The combination of sizeable maturities and ongoing sterilisation efforts is expected to remain a key factor influencing money-market conditions, short-term interest rates and yields on fixed-income instruments this week.
