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N55.66bn net outflow from government securities, forex tighten money market
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In the primary market, the 91-day and 182-day T-Bills’ rise was as a result of a total net withdrawal of N6.51billion, while in the secondary market, there was a total outflow of N30billion.
According to our source, FSDH Weekly, N36.51billion left the money market from the securities transactions, while about N19.17billion left the market from the foreign exchange (forex) market.
A deeper look at the inter-bank market transactions show that the 7-day Nigeria Inter Bank Offer Rate (NIBOR) inched up throughout the week in review to close the week at 11.42 percent from the last two weeks figure of 10.75 percent.
FSDH Weekly further shows that the 90-day NIBOR dipped marginally to end the week, closing at 13.43 percent, from the past two weeks figure of 13.46 percent.
During the week in review (last week), at the 91-day Treasury Bill auction, a total of N5billion worth of bills was offered, “N5.47billion was subscribed, and total allotment was N5billion at a discount rate of 8.84 percent up by nine basis point when compared with preceding week discount rate of 8.75 percent.
A total of N5billion worth of matured bills was repaid into the system resulting in nil net outflows.
The 182-day T-Bill auction was not left out. The Central Bank of Nigeria (CBN) offered a total of N10billion worth of bills, N16.51billion was subscribed, while N16.51 billion was sold at a discount rate of 9.15 percent, up by 15 basis points from the preceding week’s figure of 9 percent.
A total of N10billion worth of matured bills was repaid into the system resulting in a net flow of N6.51billion.
Meanwhile, at the secondary segment of the government securities market, total bids received in the two-way quote trading system, FSDH said amounted to N30billion with tenor days ranging from 182 to 324 days.
More importantly, at the foreign exchange auction, the total amount offered was $60million while a total of $150million was sold.
During the review week, the value of naira remained stable at the official market but appreciated significantly in the parallel and inter-bank markets.
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