Interbank lending rate rose to one per cent on secured lending on today from 0.5 per cent previously, following a drop in banking system liquidity on the back of foreign exchange and treasury bills purchases, finance analysts.
Finance analysts said the central bank of Nigeria (CBN) has also failed to update data on commercial lenders cash balance since Monday, putting most dealers in the dark about the volume of liquidity available in the market to trade with.
CBN had sold N119.92 billion naira this week in Treasury bills with maturities from three months to a year at an auction.
The secured open buy-back (OBB) – the rate at which lenders can borrow from the interbank market using treasury bills as collateral – rose to one percent from 0.5 per cent last week, still far below the cbn’s 13 per cent benchmark interest rate.
Unsecured overnight placement traded at 1.5 per cent against one per cent last week.
“The market would take its cue from the outcome of MPC( Monetary policy Committee) meeting on next week Tuesday,” another finance analysts added.
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