Interbank Rates Mixed on Signs of Liquidity Boost

Interbank Rates Mixed on Signs of Liquidity Boost

Interbank rates diverge on signs of improved liquidity in the financial system on Tuesday. Due to inflows from signature bonuses and FGN coupon payments, liquidity pressure eased while banks continued to raise from the standing lending facility.

Market data showed that the deficit balance in the banking system eased by 33%, opening the day with a shortfall of N896.4 billion from N1.348 trillion.

Still, banks suffered from liquidity shortfalls in the financial markets as inflows failed to upturn deficits ahead of Federal Account Allocation Committee credit.

Hence, the Nigerian Interbank Offered Rate (NIBOR) showed mixed movements across all maturities, Cowry Asset Limited said. 

As a result of tight funding, the interbank rates remained high, and banks continue to access funds from the Central Bank of Nigeria’s (CBN) borrowing window.

Data from the FMDQ platform confirmed that the open repo rate (OPR) increased by 0.11% to close at 32.33%, while the overnight lending rate (O/N) declined by 0.06%, ending at 32.75%.

Analysts expect money market rates to remain tight, driven by liquidity constraints and additional outflows from bond auctions. #Interbank Rates Mixed on Signs of Liquidity Boost Stanbic IBTC Adds Fixed Income Asset into Securities Lending Services