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    Tuesday, October 13

    Money Market Rates Dip as Financial System Liquidity Tops N4trn

    Investors to get N2.41trn OMO Bill Repayment
    Olu AnisereBy Updated: News No Comments2 Mins Read
    Money Market Rates Dip as Financial System Liquidity Tops N4trn
    CBN

    Money Market Rates Dip as Financial System Liquidity Tops N4trn

    Money market rates eased as net surplus liquidity in the financial system increased by about 9%, reflecting the absence of funding pressures on Monday.

    The liquidity conditions in the financial system closed strong ahead of large inflows from OMO bill repayments, which are expected to bolster liquidity levels.

    At the same time, market analysts said they expect the Central Bank of Nigeria (CBN) to conduct an open market operation to mop up excess liquidity.

    According to analysts, surplus liquidity in the banking system will expand without an OMO bill, with additional inflows anticipated. Market reports revealed that ₦2.41 trillion OMO maturity is due on Tuesday.

    The impact on liquidity will depend on the outcome of the anticipated OMO auction, Herwood Securities Limited said in its commentary note.

    The banking system recorded an 8.99% increase in liquidity on Monday, settling at about ₦4.04 trillion from ₦3.71 trillion, AIICO Capital Limited market data confirmed.

    The Overnight rate eased 13 basis points to 20.72% from 20.85%, and the Open Repo rate fell 40 basis points to 20.00% from 20.40%. Nigerian Overnight Financing Rate (NOFR) was unchanged at 20.00%.

    Interbank rates are expected to remain within current levels, with market participants closely monitoring liquidity conditions and the auction outcome, Herwood Securities Limited said in its note. Nigerian Naira Softens Against US Dollar, Euro, British Pound

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    Olu Anisere is a financial and economic journalist at MarketForces Africa, specialising in African macroeconomic policy, international finance, energy markets, and continental development.He covers major multilateral institutions, including the International Monetary Fund (IMF), World Bank, and the United Nations Economic Commission for Africa (ECA), providing readers with frontline reporting on policies shaping Africa's economic trajectory.Olu has reported extensively on Nigeria's fiscal and monetary policy landscape, including CBN interest rate decisions, Nigeria's bond market, FX inflows, and the country's engagement with global financial institutions.His coverage spans IMF and World Bank Spring and Annual Meetings, African Ministers of Finance conferences, and high-level economic forums where Africa's development agenda is set.His reporting captures perspectives from Africa's most influential economic voices, including Tony Elumelu, senior IMF officials, and CBN leadership, bringing institutional insight and policy depth to MarketForces Africa's readers.Olu also covers Inside Africa — tracking economic, investment, and development stories from across the continent. Olu Anisere is based in Lagos, Nigeria.

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