Liquidity: Bonds Payment Stokes Pressure on Interbank Rates
Interbank rates rose as Nigerian bonds auction settlement dragged liquidity in the financial system. The money market experience huge outflow relating to settlement of bonds auction sales by the Debt Office on Monday.
FGN bond auction settlement of approximately N910.30 billion dragged liquidity level lower on Wednesday as market anticipates inflows from FAAC disbursement.
Hence, the Nigerian Interbank Offered Rate (NIBOR) trended upward across all tenors, indicating tight liquidity conditions in the banking system.
Similarly, key money market indicators showed an upward movement, with the Open Repo Rate (OPR) increasing by 1.71% to 31.71% and the Overnight Lending Rate increasing by 1.64% to 32.21%.
Last week, system liquidity closed negative at -N722 billion from -N3.10 trillion in the previous week. This kept money market rates elevated at double digit highs. #Liquidity: Bonds Payment Stokes Pressure on Interbank Rates#
GTCO Launches Waste-for-Gas Initiative in Ogun, Distributes 3,000 Gas CylindersThe post Liquidity: Bonds Payment Stokes Pressure on Interbank Rates appeared first on MarketForces Africa.