Nigeria, March 26 -- Midweek data show the apex bank conducted an Open Market Operations auction worth about N2.36 trillion to tighten conditions and reduce surplus funds in circulation.

While the move initially squeezed liquidity, the effect proved short-lived as balances quickly rebounded across the system.



At the start of the week, liquidity stood above N8 trillion before briefly dropping after the intervention.

However, deposits surged again, reflecting strong underlying inflows and persistent excess cash within the financial system.



The News Chronicle understands that banks have continued to channel surplus funds into the Central Bank's deposit window, taking advantage of attractive risk-free returns. This trend has kept l...