Liquidity Mop-up: The CBN is Aggressively Draining Naira Liquidity From the system to stabilize The Exchange Rate
The Central Bank of Nigeria’s (CBN) “liquidity mop-up” is the financial equivalent of trying to dry a floor while the taps are still running. By aggressively draining excess Naira through Open Market Operations (OMO) and high-interest Treasury bills, the CBN is betting