Proshare Logo
   Market Date: 28-01-2015   
Agriculture ARTS FINANCE All One Min News Archives Bonds Cap Mkt Sentiments Capital Market CASHLESS NIGERIA Commodities Corporate Earnings Daily & Weekly Market Updates Elections Enterpreneurship ETFs Forex Frauds & Scandals General Global Market Insurance Investors NewsBeat Islamic Finance Mergers & Aquisitions Money Market Mortgage Mutual Funds Nigeria Economy Oil Sector Opinions and Analysis Pensions People Personal Finance Politics Power Products & Services Professionals Property Public Offers Private Placements Regulators REITs Stock PICKS Taxation Telcos Travel & Tours Unlisted OTC MARKET World of Business

Nigerian interbank rates ease on budgetary inflows

Category: Forex

  Read (2134)
Nigerian interbank rates ease on budgetary inflows



Friday February 3, 2012

Nigeria's interbank lending rates closed at an average of 13.50 percent this week, easing from 15.50 percent last week, following the release of some of December's budgetary allocation to government agencies, traders said on Friday.

The borrowing rate opened the week at 12.25 percent on large budgetary inflows, but rose back up to Friday's close after the central bank mopped up liquidity by selling treasury bills.

"A portion of December budget allocations to state and local governments finally hit the system on Monday, helping to boost liquidity level and this reflected in the cost of borrowing at the interbank," one dealer said.

December budgetary allocation were delayed for over two weeks, causing a liquidity squeeze in the system, pushing up cost of borrowing in the interbank market last week.

Africa's top crude-oil exporter shares proceeds from oil sales from a centrally held account every month to its three tiers of government - federal, states and local - providing liquidity to the banking system and impacting on lending rates.

The secured Open Buy Back (OBB) eased to 14.0 percent from 15.0 percent last week, 200 basis points above the central bank's 12.0 percent benchmark rate, and 4.0 percentage points above the Standing Deposit Facility (SDF) rate.

Overnight placement dropped to 13.50 percent from 15.50 percent, while call money traded at 14.0 percent against 16.0 percent last week.

Market opened on Friday with a cash balance of 225 billion naira ($1.40 billion) compared with about one billion naira cash balance a week ago.

"The market is expected to tighten up next week, while lending rates should climb higher because of the aggressive liquidity mop-up exercise by the central bank and regular funding for foreign exchange and treasury bills purchases," another dealer said.

Also, Nigeria plans to auction treasury bills worth 149.27 billion naira at its regular debt auction next week, further exerting pressure on liquidity.




Reuters (Reporting by Oludare Mayowa)

Tags: , 

Comment With Your Facebook or Yahoo! ID

Latest news

News on Forex

About Us

Who We Are
Our Team & Partners
Corporate Governance
Advertise with Us
Subscribe / Unsubscribe
Site Map
News Feed - RSS
Contact Us
Volunteer Program
Message from CEO

News & Features
The Analyst / Market Data
Investor Relations Portal
The Regulator
Economy & Politics
Training Portal
Events Calendar
NewsStands - Online Reputation

Products and Services

Research & Market Intelligence
Analyst Services
Offers & Rights Support Service
Investor Relations Services
Alert & Subscription Services
Share Support Services
Proshare Consult
Event & Seminar Coverage
Market Directory
File a Complaint
News & Analysis

News from TheANALYST
Video News from WebTV
Money Market Updates
Opinions & Analysis
Nigerian Economy
Market Data
The Regulator
Discussion Forum

Subscriber Agreement
Privacy Policy
Data Policy
Copyright Policy
Comments in Site
Advertising Code
Conflict of Interest
Content Partnership
3rd Parties

Online Trading and Execution
Legal Support Services
Web/Technology Services
File a Complaint

CBN Governor 2014