Browsing: Money Market

Financial System Liquidity Surges 19% on OMO Bill Inflow The financial system’s liquidity increased by about 19% following a large…

Money market rates diverged amidst strong liquidity in the financial system, driven by deposits from Nigerian lenders’ activities at the Apex Bank window.

Deposit Money Banks’ activities at the Central Bank of Nigeria (CBN) Standing Deposit Facility (SDF) window boosted financial system liquidity to N7.65 trillion in the absence of the OMO auction.

Reflecting the absence of financial pressures, the overnight interest rate has declined following a significant rise in money market liquidity, which has now reached N6.8 trillion.

Money market rates closed mixed despite a significant surge in financial system liquidity at the beginning of the week. The overnight lending rate rose, but the repo rate closed flattish.

Money market rates declined moderately, driven by an excess of liquidity in the financial system following a cut in Nigeria’s monetary policy rate (MPR).

Inflows from expired OMO bills and from deposit money banks (DMBs)’ lodgments buoyed liquidity in the financial system, investment firms said in separate market updates.

A flood of inflow from expired investment securities, amid zero liquidity mop-up, drove excess liquidity in the money market higher last week. 

Money market rates fell as deposit money banks (DMBs) stepped up cash lodgment at the Central Bank of Nigeria (CBN) Standing Deposit Facility (SDF) window, enhancing financial system liquidity.

The overnight lending rate surged while the repo rate remained steady as money market liquidity increased