CBN sterilizes N3.57 trillion to contain inflation
Central Bank sterilizes N3.57 trillion in three days as banks park surplus cash in SDF at 22.8% overnight rate. System liquidity hits N4.32 trillion midweek, with SDF placements surging from N2.52 trillion to N4.26 trillion. CBN absorbed N435 billion net on Feb 17 and N1.14 trillion on Feb 19 through OMO sales and treasury issuances. Analysts attribute liquidity build-up to high FAAC allocations and economic recovery, noting SDF usage remains minimal. Sterilization costs N3 trillion annually, increasing borrowing costs and potentially slowing credit growth despite inflation control efforts.