Liquidity Tightens As CBN Withdraws N3.83trn From Financial System

Nigeria’s financial system experienced a tightening in liquidity last week as the Central Bank of Nigeria (CBN) intensified its liquidity sterilisation operations, withdrawing an estimated N3.83 trillion from the banking system despite significant inflows from maturing securities.
Data from the Financial Markets Dealers Association (FMDA) Weekly Market Snapshot showed that average system liquidity declined by 1.10 per cent week-on-week to N4.61 trillion, reflecting the impact of the apex bank’s sustained mop-up activities aimed at reducing excess liquidity in the economy.
The report noted that the liquidity squeeze came amid continued inflows from maturing instruments, but these were ...