Bond coupon pay­ment, FAAC dis­burse­ment, ma­tur­ing OMO bills to con­tract overnight lend­ing rate

Business a.m. - - NEWS - Afo­labi Oluwaseun

MA­TUR­ING OMO BILLS worth N381.88 bil­lion, FAAC dis­burse­ments to states and lo­cal govern­ments of N382.52 bil­lion, and bond coupon pay­ments amount­ing to N6.02 bil­lion are ex­pected to out­weigh out­flows, thus, boost­ing sys­tem liq­uid­ity, which In ef­fect will lead to a con­trac­tion in the overnight lend­ing rate this week.

The overnight lend­ing rate last week shed 192 ba­sis points, week-on-week, to 11.42 per­cent, against last week’s close of 13.33 per­cent.

Rates were el­e­vated through to mid-week fol­low­ing out­flows from whole­sale FX sales. How­ever, in­flows from ma­tured OMO bills of N372.88 bil­lion and re­tail FX re­funds of N200 bil­lion on Thurs­day boosted liq­uid­ity.

The CBN con­ducted the usual OMO auc­tion, sell­ing a to­tal of NGN186.02 bil­lion worth of bills.

in the 1-year con­tract to NGN409.92.At the par­al­lel mar­ket, the naira en­joyed sta­bil­ity at N362, while it ap­pre­ci­ated

In a sur­vey of street mar­kets in Ikeja showed that the naira traded flat, as the dol­lar traded at N362 per dol­lar and the pound ster­ling traded at N476, while the Euro traded at N415, to close the week.

At the Bureau De Change (BDC) win­dow, the Naira also traded sta­ble at N360 to the dol­lar and was bought at N358, while the Pound Ster­ling and Euro closed at N478 and N415 re­spec­tively as traders bought the pounds at N470 and the Euro at N405.

In the I&E FX win­dow, ap­pre­ci­ated by 0.05 per­cent to its low­est point N363.84.

To­tal turnover in the IEW rose by 36.4 per­cent to $1.114 bil­lion, against $816.78 mil­lion recorded last week. Mean­while, the for­eign re­serves con­tin­ued to de­plete dur­ing the week, drop­ping $375.67 mil­lion to $42.34 bil­lion.

In the FX for­wards mar­ket, the USD/NGN strength­ened across most of the ma­jor dated con­tracts of 1-month (+0.07%), 3-month (+0.04%) and 6-month (+0.07%) dated con­tracts to N367.26, N374.08 and N384.99 re­spec­tively, while it de­pre­ci­ated by 0.47 per­cent

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