Nigeria’s central bank sold N31.94 billion ($104.76 million) in treasury bills on Friday in a bid to tighten liquidity in the money market while overnight lending rate fell.
Traders said the bank sold N31.52 billion of 349-day treasury bill at 18.59 percent and N440 million of 160-day treasury bill at 17.98 percent at an auction on Friday.
Cost of borrowing among commercial lenders however dropped to around five percent on the interbank market from around 8.5 percent last week.
Traders said cash balance in commercial lenders’ accounts with the central bank stood at N320.35 billion on Friday, boosted by the repayment of around N287.39 billion in matured treasury bills on Thursday.
“Interbank rate is at low level because the central bank sold fewer dollars this week (on the currency market),” one currency trader said.
Traders expect rates to…
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