CBN Opens OMO to Retail Investors as FX Market Splits and Capital Flows Redraw

The Central Bank of Nigeria's decision to reopen Open Market Operations (OMO) securities to individuals and corporates has handed retail investors access to yields north of 20% — a premium of 3.5 to 4 percentage points over comparable Treasury Bills. At the August 12 auction, investors flooded in with N4.93 trillion in bids for just N600 billion of OMO paper, with the 103-day bill clearing at 20.39%. For savers who have watched the naira erode their...