No Plan to Bar Foreign Investors from OMO Auction, Says CBN

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By Obinna Chima

The Central Bank of Nigeria (CBN) has described as false media reports that it was preparing to bar foreign portfolio investors from participating in its Open Market Operations (OMO) auction.

A top official of the central bank who disclosed this on Wednesday, said the central bank would continue to take steps to encourage inflow of foreign exchange as it seeks to strengthen the naira exchange rate.

The market for OMO had grown to about $40 billion by the end of last year, according to Cairo-based investment bank EFG Hermes, with foreigners holding about a third.

OMO is a liquidity management tool of the central bank.

More details later…