Money market rates came under mild pressure Thursday as liquidity tightened slightly due to major outflows for Nigerian Treasury Bills (NTB) and foreign exchange (FX) settlements. Interbank rates climbed modestly following the ₦424.6 billion NTB settlement, part of the ₦800 billion auction conducted midweek.
Additional outflows stemmed from the Central Bank of Nigeria’s (CBN) FX intervention sales to authorised dealer banks. Despite these pressures, the banking system remained liquid, supported by ₦502.68 billion in NTB net repayments. The financial system opened with a surplus of ₦620 billion.
The Nigerian Interbank Offered Rate (NIBOR) reflected a mixed trend across tenors:
- Overnight and 6-month rates rose by 0.36% and 0.07% to 27.25% and 27.62%, respectively.
- Meanwhile, the 1-month and 3-month tenors dipped by 0.23% and 0.25% to 26.62% and 26.91%.
Key short-term indicators also trended upward, with the Open Repo Rate (OPR) and Overnight Lending Rate both climbing 0.33% to settle at 26.83% and 27.29%, respectively.
Analysts expect interbank rates to remain stable near current levels, barring any unexpected liquidity shocks.
