Money market rates remained stable as there was still plenty of cash in the banking system. Although liquidity dropped by 11%, starting the day at ₦519.11 billion compared to the previous ₦582.9 billion, there was still enough money available to keep borrowing costs in check.
With less pressure to secure funds, banks reduced their reliance on the Central Bank of Nigeria’s (CBN) lending facility, which charges high interest rates. As a result, short-term interest rates remained unchanged.
The overnight policy rate (OPR) and the overnight (O/N) rate held steady at 26.42% and 26.83%, respectively, according to AIICO Capital Limited. Additionally, Cowry Asset Limited reported that the Nigerian Interbank Offered Rate (NIBOR) dropped across all timeframes, signaling better liquidity conditions in the system.
Looking ahead, analysts expect liquidity levels to remain strong, especially with a Nigerian Treasury Bills (NTB) auction set for Wednesday. Coronation Research predicts that interbank rates could decrease as fresh inflows from FAAC disbursements, Remita payments, and Open Market Operations (OMO) maturities boost available funds.
As the market prepares for the NTB auction, TrustBanc Financial Group Limited anticipates that the system will maintain a positive cash position, keeping interbank rates steady.
