OMO ban does not affect investing in FG securities – DMO
By Mudashir Tunde
The Debt Management Office (DMO) has clarified some misconceptions surrounding the recent move by the Central Bank of Nigeria to restrict individuals, local and well-established enterprises from engaging in the primary and secondary markets for Open Market Operations (OMO) securities.
As gathered by Business a.m., the DMO made it known to the general public that the restriction does not go beyond the OMO Bills and has nothing to do with securities issued by the Federal Government.
The recent information from the DMO will calm the nerves of several individuals and corporate bodies that are investing in Federal Government of Nigeria Securities.
The CBN had earlier sent out the Circular to All Banks referenced FMD/DIR/GEN/OGC/14/009 dated October 23, 2019, on Eligible Investors in Federal Government of Nigeria Securities, which excluded some investor categories from investing in OMO Bills.
The DMO, therefore, clarified that Open Market Operation Bills (OMO Bills) are securities issued by the CBN for monetary management purposes.