The Overnight lending rate of banks in the country leaped to 23 percent over the weekend from 10 percent it previously closed, after the treasury bills were offered at higher yields.
Also, the Open Buy-Back, OBB, leaped to 22.5 per cent, up three per cent, against eight per cent on Thursday, August 11,on the back of treasury bills’ maturity worth N113.7 billion.
The banks were paying for treasury bill purchases, as well as the foreign currency purchases made at the interbank market on behalf of their customers, thereby tightening the liquidity level further.
In recent times, the Central Bank of Nigeria, CBN has been offering treasury bills at high rates to woo offshore flows into Nigeria, which has been hit hard by oil price volatility in more than 24 months.
