• Thursday, May 30, 2024
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BusinessDay

Interbank rate up at 10.50 percent after T-bill sale

naira-notesNigeria’s interbank lending rates inched up this week to an average of 10.50 percent on Friday, up from 10.37 percent last week after a treasury bill sale drained liquidity, dealers said.

The Central Bank of Nigeria (CBN) sold a combined N200 billion ($1.2 billion) worth of bills on Monday and Thursday this week, to manage excess liquidity. It also sold N114.39 billion  in treasury bills at a primary market auction.

The market opened with a cash balance of around N516 billion from government budgetary allocations, oil company cash call payments and matured open market bills, before settling bills sold this week, dealers said.

The cash balance was around N400 billion last Friday.

“Unless the central bank sells more bills we expect rates to remain stable next week,” one dealer said.

The open buy-back rate climbed slightly to 10.50 percent from 10.25 percent, 1.50 basis points below the central bank’s benchmark interest rate of 12 percent.

Overnight placements remained unchanged at 10.50 percent, the same level as last week.