Nigeria’s central bank withdraws N3.30 trillion from banks in June, keeps tight policy stance
AI Market Summary
Nigeria's central bank drained N3.3tn via OMO and bond settlement debits, reinforcing a restrictive policy stance. Despite a liquidity surplus, money-market rates and NIBOR rose sharply, and T-bill stop rates climbed, tightening domestic financial conditions. This signals continued prioritisation of inflation and FX stability over growth, pressuring naira-denominated risk assets and keeping local funding costs elevated in the near term.
Impact level
● Low
Affected assets
NCCOGOLD2USD/USDT-0.22%
AI Insight · NCCOGOLD2USD/USDTAI Insight
▼ Bearish
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Nigeria’s central bank withdrew about N3.3 trillion from the banking system in June through OMO auctions and Federal Government bond settlement debits, maintaining a tight monetary policy stance. The system still ended the month with a liquidity surplus of about N4.1 trillion, but overnight rates rose, with the OVN at 22.23% and the NOFR reaching 24.00%. Demand at primary Treasury bills auctions remained strong, with subscriptions running about 2.16 times the offer and the 364-day stop rate rising to about 17.34%. The move is negative for naira-denominated local equities and bonds.
