Interbank Rates Steady On Robust Banking System Liquidity
Interbank rates remained steady despite a slight moderation in the banking system’s liquidity balance, reflecting the absence of significant pressure in the money market. The short-term benchmark interest. . .
Interbank rates remained steady despite a slight moderation in the banking system’s liquidity balance, reflecting the absence of significant pressure in the money market. The short-term benchmark interest rates hovered around 22% as banks continue to lodge excess cash with the Central Bank of Nigeria (CBN) Standing Deposit Facility (SF) window. The system liquidity moderated slightly by ₦341. 79 billion to ₦6. 47 trillion from ₦6. 81 trillion reported on Wednesday, AIICO Capital Limited said in a note. The intermarket liquidity declined despite ₦330. 65 billion in coupon inflows and a 49. 58% jump in banks’ placements at the CBN window. In the absence of an OMO bill auction, Deposit Money Banks (DMBs) increased their placements at the CBN’s Standing Deposit Facility window to ₦6. 14 trillion from ₦4. 11 trillion the previous day. At the midweek auction, the CBN allotted about N1. 46 trillion in treasury bills sales to investors with no matured payments from the investment security. Hence, the market anticipates a financial system debit for the auction settlement to weaken liquidity conditions on Thursday. Broadstreet analysts expected the CBN to float an OMO bill auction to mop up excess credit in the money market. Data from the FMDQ platform revealed that the Overnight Rate (OVN) remained unchanged at 22. 10%, with the Nigerian Overnight Financial Rate (NOFR) and open repo rate unchanged at 22. 00% apiece“We expect system liquidity levels to moderate in the next session, supported by Nigerian Treasury bills auction settlements and expected OMO sales set for tomorrow”, AIICO Capital Limited said. Yield on Nigerian Treasury Bills Dips Ahead of Auction, InflationOlu AnisereOlu Anisere is a financial and economic journalist at MarketForces Africa, specialising in African macroeconomic policy, international finance, energy markets, and continental development. He covers major multilateral institutions, including the International Monetary Fund (IMF), World Bank, and the United Nations Economic Commission for Africa (ECA), providing readers with frontline reporting on policies shaping Africa's economic trajectory. Olu has reported extensively on Nigeria's fiscal and monetary policy landscape, including CBN interest rate decisions, Nigeria's bond market, FX inflows, and the country's engagement with global financial institutions. His coverage spans IMF and World Bank Spring and Annual Meetings, African Ministers of Finance conferences, and high-level economic forums where Africa's development agenda is set. His reporting captures perspectives from Africa's most influential economic voices, including Tony Elumelu, senior IMF officials, and CBN leadership, bringing institutional insight and policy depth to MarketForces Africa's readers. Olu also covers Inside Africa — tracking economic, investment, and development stories from across the continent. Olu Anisere is based in Lagos, Nigeria.