Sunday, 23 June 2013

Nigerian Interbank Rates Flat On Maturing Bills, Budget Flows




Nigerian interbank lending rates ended the week unchanged at an average of 11.33 percent, as maturing treasury bills and anticipated flows of public funds kept the market from tightening.

The central bank repaid about 160 billion naira in matured open market operation debt notes, swelling liquidity.

Dealers said the market opened with a cash balance of about 76.65 billion naira on Friday, compared with 136 billion naira a week earlier.

The secured Open Buy back was unchanged at 11 percent, 100 basis points lower than the central bank’s benchmark interest rate.

Traders said rates will drop to around 10.25 percent for overnight next week by the time cash from the May budget allocation to government agencies hits the market.

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