The first thing is to ask a simple question – how come CBN’s OMO involves foreign investors? Has the CBN finished mopping up the liquidity in Nigeria that it is now mopping up foreign liquidity as well? Nigeria’s OMO does not mop up excess liquidity and does not have any effect on interest rates. Nigeria owes the foreign investors who buy the OMO securities and it owes them in dollars. When you go to the Debt Management Office (DMO) website, what you see on the front page is FG’s share of Nigeria’s foreign debt that currently stands at $21bn.

Source: The Guardian July 02, 2019 04:17 UTC