Inter-bank rates yesterday dropped by 10.71 percent following the repayment of treasury bills worth N328.30 billion by the Central Bank of Nigeria (CBN).
Consequently, the Nigeria Inter-Bank Offered Rates (NIBOR) yesterday declined across tenor buckets from 14.65 percent the previous day to 13.08 percent yesterday. Consequently, overnight tenor dropped from 13.91 percent the previous day to 12.66 percent. Similarly, 7 days, 30 days, 60 days and 90 days tenors went down to 12.54 percent, 12.79 percent, 13.04 percent and 13.33 percent from 14.04 percent, 14.33 percent, 14.66 percent and 14.95 percent, respectively, the previous day, data from Financial Markets Dealers Quotations (FMDQ) have indicated.
Analysts had anticipated a moderation in inter-bank rates following inflows from treasury bills worth N328.30 billion which mature on Thursday, March 6, 2014. The bills consisted of 91-day bills worth N22.97 billion; 97-day bills worth N39.76 billion; 98-day bills worth N16.76 billion; 153-day bills worth N49.34 billion; 155-day bills worth N42.35 billion; 182-day bills worth N40.00 billion; and 364-day bills worth N117.12 billion.
“Given improved market liquidity via treasury bills repayment, vis-à-vis, inter-bank funding requirements, rate might remain relatively steady on March 6”, analysts at Ecobank said in a report.
However, naira yesterday weakened against the US dollar losing N0.76k at the inter-bank market to close at N164.56/$ as against N163.80/$ the previous day, data from FMDQ have said.
The CBN on Wednesday offered a total of $400 million but sold about $369.12 million to 20 deposit money banks at the rate of N155.75/$ at its bi-weekly Retail Dutch Auction System (RDAS) window.
HOPE MOSES-ASHIKE
