Inter-bank rates at the money market yesterday rose by 6.54 percent following the N62.1 billion Treasury bills auction via Open Market Operation (OMO) on Tuesday as well as foreign exchange policy by the Central Bank of Nigeria (CBN).
The Nigeria Inter-Bank Offered Rates (NIBOR) yesterday increased across tenor buckets from 13.75 percent the previous day to 14.65 percent yesterday. Consequently, overnight tenor climbed from 12.75 percent the previous day to 13.91 percent. Similarly, 7 days, 30 days, 60 days and 90 days tenors rose to 14.04 percent, 14.33 percent, 14.66 percent and 14.95 percent from 13.04 percent, 13.45 percent, 13.79 percent and 14.12 percent, respectively, the previous day, data from Financial Markets Dealers Quotations (FMDQ) have indicated.
Ezun Olakunle of economic research, Ecobank Nigeria, confirmed to BusinessDay by phone that the market is still experiencing illiquidity following the CBN’s treasury bills auction and the pre-funding for two days by dealers before the foreign exchange auction day at the Retail Dutch Auction System (RDAS). “All these are taking money away from the system”, he said.
Victor Ofili of research desk, Cowry Asset Management Limited, also confirmed to BusinessDay by phone that the effect of the N50 billion and N62.1 billion mop up by the CBN on Monday and Tuesday coupled with forex auction showed up at yesterday’s trading.
HOPE MOSES-ASHIKE
