Nigerian interbank lending rates eased to an average of 10.25 percent on Friday, down from 10.37 percent last week, after a liquidity boost from government revenue disbursals and cash calls for joint venture oil production.
Traders said the cash balance held by banks at the central bank rose to about 433.2 billion naira ($2.7 billion) on Friday, up from 297 billion naira last week.
“We don’t expect any significant change in rates next week,” one dealer said, adding inflows from maturing treasury bills were due then.
Lending rates among banks have reached a floor, dealers said, noting they do not see rates falling further despite the liquidity boost to the banking system, due to the cap on the central bank’s benchmark deposit rate.
The open buy-back (OBB) was unchanged at 10.25 percent, 1.75 percentage points below the central bank’s benchmark interest rate of 12 percent.
Overnight placement fell to 10.25 percent from 10.50 percent last week.
– Reuters
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