FMDA’s Monthly report-May 2026: Highlights
- Average system liquidity increased by 7.76% in May to N5.22 trillion, despite the CBN withdrawing an estimated N12.06 trillion through liquidity management operations during the period.
- Looking ahead, an estimated N10.90 trillion in inflows is projected for June, about 3.51% higher than May levels.
- OMO maturities are expected to account for about 71% of total inflows, though the ultimate liquidity impact may be moderated by subsequent CBN sterilisation activities.
- The naira depreciated marginally in the NFEM market, despite total FX turnover improving to over $8 billion during the month.
- Oil prices remained elevated on average in May at $102.40/bbl, although optimism surrounding potential peace talks has recently pushed prices below $100/bbl.
- External reserves gained over $1 billion within about three weeks, as receipts from earlier crude oil exports and elevated oil prices gradually flowed into the reserve position.
- Global bond yields generally trended higher, reflecting persistent inflation concerns and expectations that major central banks will maintain a cautious policy stance.
