Interbank Rates Dip as Money Market Condition Improves
The interbank rates declined as a sign of liquidity shone brightly in the money market. The financial system liquidity pressure eased for the first time this week despite the absence of significant inflows.
Series of auction sales and bank demand for funding were identified as major impediments to liquidity boost in the financial system. The Central Bank has recently conducted Treasury and OMO bill auctions, which were debited against the liquidity balance in the system.
Banks activities at the standing lending facility have however been constrained by an elevated rate on short term borrowings, Yesterday, the Nigerian interbank offered rates moderated across most maturities, according to Cowry Asset Limited, reflecting improved money market conditions.
Key money market rates such as the Open Repo Rate and Overnight Lending Rate decreased, according to data from the FMDQ, in the absence of funding pressure in the financial system.
Investment firms reported that the Open Repo Rate and Overnight Rate decreased by 23bps and 11bps to 31.00% and 31.53%, respectively on Thursday,
Depending on the direction, market analysts said movement in short term benchmark rates affects returns on money market funds and deposits. #Interbank Rates Dip as Money Market Condition Improves Nigeria, Angola Inflation Highest in Frontier Markets -Report
