CBN mops up N820bn in April
THE interbank money market recorded 49 percent fall in average liquidity last month as the Central Bank of Nigeria, CBN, mopped up N820 billion from the market during the month.
Also during the month the CBN sold N820.15 billion worth of secondary market (Open Market Operations, OMO) treasury bills (TBs) while it repaid N225.65 billion for maturing bills. Thus the interbank money market experienced net outflow of N594 billion during the month.
However, cost of funds generally moderated downwards with average interest rate on short term interest rates falling 88 basis points (bpts).
According to a review of activities in the interbank money market in April by Lagos based investment firm, Financial Derivatives Company, average liquidity within the banking system stood at N112.17 billion, 48.92 percent lower than the position of N219.63 billion in the corresponding period in March.
The company also stated that: “Due to the low liquidity…
