• Tuesday, July 23, 2024
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CBN debunks report of restricting OMO sales to foreign investors

CBN defends stifling crypto market as investors count loss

The Central Bank of Nigeria (CBN) on Wednesday denied the report that it plans to stop phase out sales of bills known as Open Market Operation (OMO), to foreign Investors.

Osita Nwanisobi, director of the corporate communications department, CBN, disclosed this to Businessday by phone on Wednesday.

“There’s nothing like that. It is not true. Absolutely, nothing like that. We are trying to get exactly where this is coming from. However, we have put on information across that the CBN is not trying to stop anything and that is the position, “he said.

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A report by Bloomberg said Nigeria’s central bank is preparing an end to an era of debt sales that handed foreign investors some of the best carry returns in Africa.

OMO is the sales or purchases of government securities by the Central Bank in order to expand or contract money in the banking system and influence interest rates.

In October 2019, the CBN adopted a policy prohibiting domestic nonbank institutional investors from reinvesting in OMO bills. The significant liquidity released from maturing OMO bills held by these investors has mostly found its way into the government debt market which has driven interest rates to record low levels.