Inter-bank market yesterday was awash with liquidity as Nigeria Inter-Bank Offered Rates (NIBOR) dropped across board.
For instance, midnight call dropped to 10.25 percent from 10.62 percent the previous day. Also 7 days and 30 days dropped from 10.91 percent and 11.2917 percent on Monday to 10.54 percent and 10.87 percent, respectively.
Sewa Wusu, head of markets, Sterling Capital, attributed the drop in the rates at which banks lend to each other to the payment of Federation Accounts Allocation Committee (FAAC) to the three tiers of government for the month of February.
The nation’s currency, naira, yesterday remained stable. Analysts who spoke with BusinessDay last night said the stability in naira was due to the Central Bank of Nigeria (CBN)’s tightening effort.
They added that naira will tomorrow moderate depending on what the CBN will offer at the bi-weekly Dutch Auction System (WDAS).
Naira on Monday closed at N158.70/$ as against N158.65/$, data from the Financial Markets Dealers Association (FMDA) show.