Interest rates at the interbank market Thursday dropped by 65.41 percent from 41.89 percent on Wednesday to 14.49 percent, following the repayment of treasury bills worth N156.4billion by the Central Bank of Nigeria (CBN).
Consequently, the Nigerian Interbank Offered Rates (NIBOR) dropped across tenor bucket such that call tenor went down to 13.25 Thursday from 55.83 the previous day. Similarly, 7 days, 30 days, 60 day and 90 days dropped from 42.62 percent, 36.95 percent, 37.79 percent and 38.95 percent respectively on Wednesday to 13.87 percent, 14.16 percent, 14.50 percent and 14.83 percent, respectively, Thursday data from the Financial Markets Dealers Association (FMDA), have indicated.
BusinessDay checks revealed that treasury bills repayment worth N156.4 billion by the Central Bank of Nigeria (CBN) hit the system resulting to moderation in interbank rates.
A breakdown of the repayment shows that N102.9 billion was repaid via Open Market Operation (OMO) and a total of N53.5 billion was repaid via Primary Market Auction (PMA).
Analysts at Cowry Asset Management had anticipated that treasury bills valued N156.53 billion would mature on Thursday 19, September. The bills will consist of: 91-day bills worth N20.27 billion; 164-day bills worth N102.98 billion; and 182-day bills worth N33.26 billion via PMA and OMO.
The naira Thursday strengthened against the US dollar gaining 79 kobo at the interbank market to close at N161.31/$ as against N162.10/$ traded the previous day. The local currency also firmed up at the bureau de change and parallel market gaining N2.00k each to close at N162.50/$ and N163.00/$ respectively compared to N164.50/$ and N165.00/$ traded previously, data from FMDA has shown.
The CBN on Wednesday offered and sold $300 million to 17 bank at N155.76/$ at it bi-weekly Wholesale Dutch Auction System (WDAS).
0 comments:
Post a Comment