Money Market Rates Steady as Banking Deficits Ease
The short-term benchmark interest rates closed flattish in the money market as liquidity deficit in the banking system eased, according to market analysts’ notes. The deficit in the banking system extended into the new week, easing by 74% to open at N805.37 billion from N3.101 trillion last week.
Despite the absence of significant funding pressures, the money market rates steadied around 33% after huge amount was raised by banks from the standing lending facility last week.
TrustBanc Financial Group Limited reported that banks with liquidity shortfall accessed funding from the Central Bank of Nigeria (CBN) borrowing window to the tune of N5.8 trillion.
On Monday, the Nigerian Interbank Offered Rate (NIBOR) experienced a decline across most tenors, with the exception of the Overnight NIBOR, which rose by 0.13%, reaching 33.00%, according to Cowry Asset Limited.
Meanwhile, key money market indicators remained stable, as both the Open Repo Rate (OPR) and the Overnight Lending Rate held steady at 0% to 32.45% and 32.80%, respectively. At the close of the business, interbank liquidity remained negative, reflecting ongoing illiquidity within the financial system.
Barring any significant inflow into the system, analysts at TrustBanc expect liquidity conditions to remain tight, with interbank rates likely to persist at elevated levels. #Money Market Rates Steady as Banking Deficits Ease Nigerian Exchange Falls by N73bn as Investors Dump VFD, OANDO
