• Tuesday, March 05, 2024
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BusinessDay

Interbank rates shed 25 bps on liquidity boost

Bank-of-Industry

Nigeria’s interbank lending rates eased to 10.5 percent on Friday, down 25 basis points from a week earlier, after the central bank paid off matured treasury bills and refunded an excess it owed to banks from a cash reserve debit, dealers said.

The central bank paid out 186 billion naira ($1.15 billion) to buy maturing Open Market Operation bills on Thursday, while it credited banks with 70 billion naira more than it owed them to enforce a cash reserve limit.

“The market is very liquid,” one dealer said.

Lenders have been unable to access their cash balance with the regulator for more than two months due to a system glitch.

The open buy-back rate eased to 10.5 percent, from 10.75 percent last week, 1.5 basis points below central bank’s benchmark interest rate of 12 percent.

Overnight placements fell to 10.5 percent, down 50 basis point from 11 percent last week.