• Tuesday, May 21, 2024
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Interbank rates stay flat for second consecutive week

The Nigeria’s interbank lending rates stayed flat for the second consecutive week at 10.37 percent on Friday, after the central bank paid off open market bills to boost liquidity, dealers said.

Th Central Bank of Nigeria (CBN) repaid about 130 billion naira ($790.27 million) in matured OMO bills and injected around 70 billion naira in net credit from cash reserves.

The market liquidity opened with a cash balance of around 550 billion naira surplus, marginally lower than 560 billion last Friday.

The open buy-back rate was flat at 10.25 percent this week, 1.75 basis points below the central bank’s benchmark interest rate of 12 percent.

Overnight placements also remained unchanged at 10.50 percent for the second consecutive week.

Traders said rates should hover around the same level next week, because cash outflow remain insignificant.

“We don’t expect much change in the liquidity level in the market next week and rates should stay flat unless the central bank increase the intensity of its mopping-up exercise,” one dealer said.