In­ter­bank lend­ing rates steady for fifth week

Daily Trust - - BUSINESS -

In­ter­bank lend­ing rates held steady for the fifth con­sec­u­tive week, Fri­day, at an aver­age of 10.5 per­cent, re­flect­ing in­creased liq­uid­ity in the bank­ing sys­tem.

Deal­ers said pay­ments to govern­ment agencies and cash from ma­tur­ing trea­sury bills had boosted mar­ket liq­uid­ity.

The cash bal­ance that lenders held at the cen­tral bank opened at a sur­plus of 767 bil­lion naira, Fri­day, up from 278 bil­lion naira last week.

The se­cured Open Buy Back was un­changed for the fifth con­sec­u­tive week at 10.25 per­cent, 1.75 per­cent­age points be­low the cen­tral bank’s bench­mark rate of 12 per­cent.

Overnight place­ment and call money were also un­changed at 10.5 per­cent and 10.75 per­cent re­spec­tively.

The cost of funds in the in­ter­bank mar­ket should re­main sta­ble around the same level next week, deal­ers said, un­less the cen­tral bank em­barked on sale of trea­sury bills to re­duce liq­uid­ity in the bank­ing sys­tem.

“We don’t ex­pect any ma­jor change in in­ter­est rates, next week, due to the level of liq­uid­ity,” one dealer said. (Reuters).

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