• Thursday, July 25, 2024
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BusinessDay

Nigerian interbank rate eases after central bank injects liquidity

CBN

Nigeria’s interbank overnight lending rate fell 3.5 percentage points on Friday after the central bank injected naira deposits from commercial lenders into the market.

The overnight rate closed at 1.5 percent on Friday, from 5 percent the previous day after the central bank drained naira liquidity when it sold Treasury bills. The rate had initially spiked to 7 percent, its highest since October.

Nigeria sold 85.83 billion naira in naira-denominated bonds maturing in 2020 and 2026 in Wednesday’s auction with payment due on Friday.

Nigeria’s interbank rate mirrors the level of naira cash liquidity in the banking system.