Nigerian inter-bank rates drops on matured T-bills

Nigerian inter-bank lending rates were flat at an average of 12 percent this week as a slow down in foreign exchange demand and the repayment of matured treasury bills boosted Naira liquidity. Nigeria’s central bank sold a combined $95 million to banks at its two auctions this week, far less than the average of $300 million sold at the auction a month ago. The market opened with a positive cash balance of N167 billion on Friday, traders said. The secured Open Buy Back (OBB) was flat at 11.5 percent, 50 basis points lower than the central bank’s 12 percent benchmark rate and 1.5 basis points above the Standing Deposit Facility (SDF) rate. Overnight placement and call money closed unchanged at 12 percent and 12.5 percent, respectively. “We see rates gradually inching up next week as the central bank intensify its mopping-up exercise through the use of open market instruments and the expected outflow to treasury bills purchase at an auction next week,” one dealer said.