Yields on Nigerian bond declined on Wednesday after the central bank slashed its cash reserve requirements (CRR) by 6 percentage points to boost liquidity in the banking system but interest rates remain high at the interbank market, traders said.
“We have seen yields dropping this morning in response to the expected increase in liquidity,” one dealer said.
Nigeria’s central bank kept its benchmark interest rate on hold at 13 percent on Tuesday but loosened monetary policy by cutting banks’ cash reserve ratio to 25 percent to ease liquidity shortages.
