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OMO Repayments Drive Banks’ Deposits with CBN to Historic N5.5trn

OMO Repayments Drive Banks’ Deposits with CBN to Historic N5.5trn

Open Market Operations (OMO) repayments have significantly boosted commercial banks’ deposits with the Central Bank of Nigeria (CBN), hitting a record N5.5 trillion.

According to market data, the surge follows recent maturities in CBN’s OMO bills, which injected liquidity back into the financial system. This has seen banks park excess funds with the apex bank, underscoring a growing preference for safe-haven deposits amid market uncertainties.

Analysts note that the development highlights both the effectiveness of OMO as a liquidity management tool and the cautious stance of banks, which are weighing risks in the broader economy.

The rise in deposits is also expected to have implications for interbank lending rates and credit availability in the coming weeks.

Financial experts say sustained liquidity inflows could shape monetary policy decisions, especially as the CBN continues its efforts to balance inflation control with financial system stability.

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