External reserves sheds $536m
By Babajide Komolafe
THE surfeit of excess liquidity in the interbank money market will persist this week courtesy of inflow of about N1.7 trillion.
Consequently, cost of funds is expected to remain in the lower single digit level while the Central Bank of Nigeria (CBN) is expected to sustain liquidity mop through sale of OMO (Open Market Operation) treasury bills.
Last week, the market recorded N627.2 billion inflow from matured OMO bills. The inflow, which cancelled the impact of N299.9 billion outflow through sales of OMO bills caused market liquidity to close at N778.5 billion on Friday, up from N482 billion at the beginning of the week.
As a result, cost of funds remained stable below five percent throughout the week, though average short term interbank interest rate rose marginally by 54 basis points week-on-week.
Data from FMDQ showed that interest rate on Collateralised (Open Buy Back, OBB) lending rose marginally by 50 bpts to…
Source: Vanguard Newspaper
