Interbank Rates Fall as N1.3trn TBills Inflow Boosts Liquidity
Banking liquidity deficit improved due to substantial inflows from non-refinanced Treasury bills that matured on Thursday. According to market analysts, interbank rates fell as N1.3 trillion in inflows from matured Treasury bills bolstered liquidity levels in the financial system.
The financial system liquidity showed improvement at the opening but remained in negative territory, even after the net credit from the Nigerian Treasury bills auction settlement.
Consequently, interbank rates remained elevated, with the overnight policy rate (OPR) and the overnight rate (O/N) ending at 32.25% and 32.67%, respectively. Analysts anticipate a slight easing in interbank rates, supported by the expected inflows from FGN bond coupon payments on Friday.
Hence, the Nigerian Interbank Offered Rate (NIBOR) trended upward across most tenors, except for the overnight rate, which declined by 0.17% to 32.75%, indicating improved liquidity in the banking system.
Similarly, key money market indicators moved downward, with the open repo rate (OPR) dropping by 0.04% to 32.25%, while the overnight lending rate decreased by 0.16% to 32.67%. #Interbank Rates Fall as N1.3trn TBills Inflow Boosts Liquidity
