Nigerian inter-bank rates ease on cash inflow

Nigeria’s inter-bank lending rates dropped this week to an average of 14.83 per cent from last week’s 15.50 per cent after a portion of public sector wages hit the system and helped boost liquidity, traders said. They said about N95 billion were released on Friday, helping to ease liquidity pressure. The market opened with a cash balance of about N148.10 billion on Friday due to the inflow and better than what the market opened with on Monday. The secured Open Buy Back (OBB) remained unchanged at 14 per cent, 200 basis points above the central bank’s 12 per cent benchmark rate and 400 basis points above the Standing Deposit Facility (SDF) rate. Overnight placement eased to 15 per cent from 16 per cent, while call money closed at 15.50 per cent lower than the 16.50 per cent it closed at last week. Call money rose as high as 17 per cent in the week before the inflow due to cash inflows to foreign exchange, treasury bills and other transactions, but eased on Friday after increased liquidity. Nigeria sold about $500 million at its bi-weekly foreign exchange auction this week and issued 111 billion naira in treasury bills on Thursday.