Nigeria’s interest rates drop as Central Bank repays N97.17bn Treasury bills
September 5, 2013 | 6:16 pm| | | Start Conversation
Interest rates at the interbank market Thursday dropped by 11.66 percent from 15.18 percent on Wednesday to 13.41 percent. Consequently, the Nigeria Interbank Offered Rates (NIBOR) increased across tenor bucket.
For instance, call tenor went down to 12.33 percent from 14.45 percent, the previous day. Similarly, 7 days and 30 days tenors dropped from 14.58 percent and 14.95 percent the previous day to 12.70 percent and 13.04 percent respectively, Thursday.
Sewa Wusu, Head of Research, Sterling Capital Markets Limited, told BusinessDay in an e-mail response that NIBOR responded to increased system liquidity following the repayment of Open Market Operation (OMO) maturities of about N97.17billion by the Central Bank of Nigeria (CBN).
According to him, the N152.71billion repayment in matured Treasury-bills was net off by the auction of the same amount with total subscription of N378.31 billion or 147 percent oversubscription rate.
The local currency, Naira yesterday remained stable at the interbank market closing at N163.60/$, data from the Financial Markets Dealers Association (FMDA), have indicated.
Naira on Wednesday weakened against the US dollar losing 65 kobo at the interbank market to close at N163.60/$ compared to N162.95, traded the previous day.
However, Naira also remained stable at official, bureau de change and parallel markets closing at N155.76/$, N163.50 and N164.00/$.
The CBN on Wednesday offered $300 million but sold $266.5 million to 19 deposit money banks at its twice weekly WDAS at N155.76/$.
By: Hope Moses-Ashike
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