In a strategic move to stabilize the naira and attract foreign investment, the Central Bank of Nigeria (CBN) has achieved a historic milestone by selling 364-day Open Market Operation (OMO) bills at a remarkable yield of 32 percent. This yield, the highest since the inception of OMO bill sales, reflects the growing interest from both domestic banks and offshore investors.
The CBN’s decision to offer such competitive returns is part of a broader initiative to counteract the ongoing depreciation of the naira. With inflation rates hovering around 32 percent in August, the yield on the one-year OMO bill now closely aligns with inflation, marking the closest correlation between government instrument yields and inflation in over nine years.
This development signals a significant opportunity for foreign portfolio investors, as the CBN aims to bolster investor confidence and stimulate economic growth amidst challenging financial conditions.