Wednesday, May 28, 2025

ads

Slider[Style1]

Style2

Style3[OneLeft]

Sport

Style3[OneRight]

Business

Style4

[Style5]

entertainment

Style5

Opinion

Nigeria's interbank lending rates were flat at around 15.25 percent for overnight lending on Friday, even as market liquidity dropped significantly because of persistent treasury bill sales by the Central Bank of Nigeria
Traders said market liquidity should be below N100 billion due to consistent cash withdrawal by the central bank via treasury bill sales, although data on commercial lenders' cash balance with the central bank was not available on Friday.
Traders said the central bank had sold around N1.2 trillion ($3.73 billion) in open market operations (OMO) treasury bills at 14 auctions in one month in its bid to reduce liquidity in the banking system and curb pressure on the forex market.
"Market liquidity is very thin," one dealer said.
Traders said many banks have been resorting to the central bank's standing lending facility to cover their positions.
The Naira fell to an all-time low of 490 to the dollar on the parallel market early on Friday before recovering to 475 amid a dollar shortage in Africa's largest economy.
The naira closed flat at 305.25 to the dollar on the official market, the same level it has held for the last two weeks thanks to support from the central bank.
"We expect the interbank lending rate to remain at the present level next week as the central bank is expected to continue its liquidity management strategy to curb pressure on the forex market," one dealer said.
Meanwhile, the Federal Government plans to raise N129.67 billion ($403.01 million) in short-dated treasury bills at an auction next Wednesday, the central bank said on Friday.
The bank said it would raise 28 billion naira in three-month paper, 33.49 billion naira in six-month bills and 68.18 billion naira in one-year bills.

About Michael Idakwo

This is a short description in the author block about the author. You edit it by entering text in the "Biographical Info" field in the user admin panel.
«
Next
NIMASA denies funding military operations in N’Delta
»
Previous
Agric policy should emphasise food processing, says Ooni

No comments:

Post a Comment


Top