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FX inflows: CBN clears air on OMO sales to offshore investors

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The Central Bank of Nigeria (CBN) has declared that offshore investors are free from participating in its regular sale of short-term bills via the Open Market Operations (OMO).

Meanwhile, the central bank had recently barred local investors from buying the liquidity management instrument.

Domestic investors were not allowed to participate in the OMO sales, which had higher stop rates than the Nigerian Treasury Bills (NTBs), which had unattractive yields.

It was learnt that during the period, the attractive financial asset was only made available to foreign portfolio investors (FPIs) as part of moves to boost foreign exchange (FX) inflows into the country.

Another report, however, claimed last week that the banking regulator was planning to phase out the involvement of offshore traders in the OMO sales.

The report claimed that the director of monetary policy at the CBN, Hassan Mahmud, had said last Tuesday that offerings to non-residents of OMO bills would “ultimately” be phased out.

Commenting on the report, the acting director of communications at the central bank, Osita Nwanisobi, explained that there was nothing of such at the moment. Nwanisobi said: “There is no plan by the CBN to stop OMO sales to foreigners.”

 

 

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2 Comments

  1. Pingback: FX inflows: CBN clears air on OMO sales to offshore investors - 9jaheadies

  2. Pingback: FX Inflows: CBN Clears Air On OMO Sales To Offshore Investors | Techvalley

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