Money market yesterday was awash with liquidity as the Nigeria Inter-Bank Offered Rates (NIBOR) dropped across tenor buckets.
For instance, overnight tenor dropped to 10.79 percent from 14.54 percent, the previous day. Similarly, 7-day and 30-day tenors dropped to 11.08 percent and 11.33 percent from 14.71 percent and 15.04 percent, respectively, the previous day, data from Financial Markets Dealers Association (FMDA) has revealed.
A financial analyst, who spoke with BusinessDay, last night, said the payment of matured Treasury Bills worth about N304 billion contributed to the moderation of liquidity at the inter-bank market.
The analyst expects the cost of borrowing between banks to increase today following the mop up of about N49.5 billion from the system through Open Market Operation (OMO) by the Central Bank of Nigeria.