Interbank lending rate was unchanged for
the second consecutive week at 8.25 percent after a liquidity surge
from a central bank’s cash refund to lenders and payment to Treasury
bill holders, dealers said.
Dealers said a total of 162 billion
naira ($814 million) in matured Open Market Operations (OMO) bills was
repaid this week while the central bank credited commercial lenders with
63.5 billion naira, an excess amount it charged to enforce a cash
reserve requirement.
The borrowing rate on the interbank
climbed to around 20 percent mid-week, dealers said on persistent sales
of OMO bills by central bank to mop up liquidity but it eased after the
injection of cash into the banking system.
Dealers expect liquidity to fall next
week as the state-owned oil firm NNPC, which supplies dollar proceeds of
its oil sales to the banking system in exchange for naira, plans to
withdraw its deposit with the central bank.
It began to withdraw its cash gradually on Friday, dealers said, adding that the bulk of the impact will be felt next week.
The secured open buy back was unchanged
at 8 percent, compared with the benchmark rate of 13 percent, while
overnight placement was flat at 8.5 percent.
REUTERS
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