Interest rates decline will persist — Dealers

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Economy:  FG’s decision to devalue Naira huge mistake — Thompson

MONEY

By Babajide Komolafe, Economy Editor

Liquidity inflows totalling N1.02 trillion will hit the interbank money market this month aggravating  the volume of excess cash in banks

The inflows comprise N335.13 billion coupon (interest) payment on FGN Bonds, N390 billion matured secondary market treasury bills (Open Market Operations, OMO), and N295.33 billion from matured primary market treasury bills (Nigeria Treasury Bills). 

Money market dealers who spoke to Financial Vanguard at the backdrop of the impending inflows said in the absence of aggressive liquidity mop-up by the Central Bank of Nigeria, CBN, the development is expected to aggravate the downward trend in interest rates on treasury bills which had characterised yields in the first two months of the year.

Financial Vanguard findings show that investors suffered a 51 basis point (bpt) decline in the average interest rate on Nigeria Treasury Bills (NTBs) to 3.29 per cent in February from 3.81 per cent in…



Source: Vanguard Newspaper