Cost of funds to decline further as N123bn, FAAC hit interbank market


•Analysts project higher inflation rate for May

By Babajide Komolafe

THE downward trend of cost of funds  in the interbank money market is expected to persist this week following anticipated inflow of N123 billion from maturing treasury bills and statutory allocation funds disbursement by the Federation Accounts Allocation Committee, FAAC.

Last week, cost of funds fell for the second consecutive week in the interbank money market in spite of outflow of N129.64 billion occasioned by primary market (fresh) treasury bills auction conducted by the Central Bank of Nigeria, CBN, as well as outflow of N15 billion occasioned by the Green Bonds auction conducted by the Debt Management Office, DMO.

Details of the treasury bills, TBs, auction showed that the CBN offered N15 billion worth of 91-day bills, N30 billion worth of 182-day bills, and N84.6 billion worth of 364-day bills.

On the other hand the apex bank sold N15.2 billion worth of 91-day bills, N39 billion worth of 182-day…

Vanguard Newspaper