Inter-bank lending rates were flat across the board last week at an average of 10.58 per cent, as liquidity was buoyed by the repayment of about N190bn in mature open market operation treasury bills.
Dealers said the repaid treasury bills helped the market to open with a positive cash balance of N375bn, compared with N226.6bn recorded the previous week.
The secured Open Buy Back was unchanged at 10.25 per cent, 1.75 percentage points lower than the Central Bank of Nigeria 12 per cent benchmark rate, and 25 basis points above the Standing Deposit Facility rate.
Overnight placement and call money were unchanged at 10.50 per cent and 11 per cent, respectively.
Reuters quoted a dealer as saying, “The market will still be liquid and rates are likely to remain at the same level next week.
â€ÂÂThe naira firmed to its strongest in two weeks against the US dollar on the inter-bank market last Wednesday, supported by dollar sales by a unit of Chevron.The currency closed at N157.20 to the dollar on the inter-bank, firmer than the N157.35 to the dollar it closed at on Tuesday.The local unit also closed stronger at the bi-weekly foreign exchange auction, where the Central Bank of Nigeria sold $177.9m at N155.77 to the dollar, compared with $200m sold at N155.78 to the dollar at the last auction.
“Dealers said a unit of Chevron oil sold $61m to some banks, boosting dollar liquidity in the market and providing support for the naira.The inclusion of Nigeria’s debt in JP Morgan index on Monday has continued to boost participation by foreign portfolio investors’ in local debt, bringing more dollars to the economy.
Dealers said plans by the Nigerian National Petroleum Corporation to sell dollars in the market next week could further boost support for the local currency.
Source: Punch
