There are expectations that there will be moderation in interbank rates amid expected ease in financial system liquidity. This follows Treasury Bills auctions that will be more than offset by maturing treasury bills this week.
Nigeria interbank lending rates rose by around 100 percentage points on Thursday, as commercial lenders scrambled for cash to pay for bond purchases and cover their positions, traders said.
This week, there will be treasury bills auctions worth N169.516 billion via primary market, viz: 91-day bills worth N36.786 billion, 182-day bills worth N35 billion and 364-day bills worth N95.73 billion which will be more than offset by maturing treasury bills via the primary market worth N236.181 billion viz: 91-day bills worth N36.786 billion, 182-day bills worth N35 billion and 364-day bills worth N164.394 billion.
Overnight lending rates rose to around 300 per cent from 200 per cent at the end of Wednesday, as naira liquidity dried up in the system and some banks were forced to borrow from the CBN.
Nigeria raised N105.32 billion ($345 million) from bond sales last week, and payment for the debt sale was due on Thursday, draining liquidity in the market and pushing further up the cost of money in the market.
Nigeria’s financial markets closed last week until April 18 for public holiday
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