While dealers from Afrinvest Securities said they expect OMO maturities valued at N3.8billion and N123.0billion on Wednesday and Thursday respectively to impact on system liquidity, Cowry Assets Management dealers said there will be maturing treasury bills worth N89.96 billion in the secondary market segment. “Hence, we expect financial system liquidity ease and resultant stability in interbank rates,” the Cowry dealers stated.
Nigeria’s interbank lending rate rose to around 15 percent on Friday from 5 percent the previous week after commercial lenders paid for dollar and Treasury bill purchases, draining liquidity.
The central bank sold dollars twice last week, thereby tightening naira liquidity, traders said. It also sold N25.67 billion in treasury bills on Wednesday, which further pushed up borrowing costs.
“The interbank rate traded above the 40 percent level on Wednesday,” Reuters quoted another trader as having said, because of the Treasury bill auction. He said rates later dropped sharply after the central bank repaid matured bills worth N65 billion.
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