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Inter-bank system liquidity gets a boost as CBN refunds N300bn CRR to banks

Inter-bank system liquidity gets a boost as CBN refunds N300bn CRR to banks

There are indications that the Central Bank of Nigeria (CBN) on Thursday refunded banks Cash Reserve Ratio (CRR) and swap maturities to the tune of N300 billion, according to reports by financial market dealers.

Although the details of the refund were not available at the time of this report, financial market dealers said only a few banks got the refund.

The inflows supported the inter-bank system liquidity and moderated the money market rates.

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Consequently, the Overnight (O/N) rate declined by 2.00 percent to close at 14.10 percent, while the Open Buy Back (OBB) rate declined by 1.40 percent to close at 13.80 percent on Friday.

Efforts to get the CBN to confirm this was not successful as the spokesman, Isaac Okorafor, did not respond to calls and messages.

The CBN last week debited banks to the tune of N118 billion and has within the last four months, precisely April to July 2020, debited banks about N2.2 trillion for breaching its CRR requirements.

Details coming