Cost of funds in the interbank money market went down by 30 per cent following the inflow of N250 billion from excess crude revenue and Agriculture Credit fund
Meanwhile demand for foreign exchange rose at theÂ official foreign exchange market promptingÂ theÂ Naira to further depreciate against the dollar. The Naira however appreciated at the interbank foreign exchange market following supply of $400 million by the Nigeria National Petroleum Corporation
Vanguard investigation revealed that the market experienced inflow of N250 billion courtesy N150.6 billion excess crude revenue shared by the three tiers of government and N95 billion released from the N200 billion Agriculture Credit Scheme.
Prior to the inflows cost of funds rose by two percentage points on Monday indicating re-emergence of scarcity. The inflows however altered the upward trend causing cost of funds to decline general by one third in the market by the close of business on Friday.
According to the Financial Market Dealers Association report, interest rate on Call borrowing fell to 4.5 from 6.4 the previous week, while Seven days money attracted 8.3 per cent, down from 8.7 per cent. Collateralised borrowing or Open Buy Back (OBB) also fell to 3.8 from 4.3 per cent.
Reflecting the improved liquidity situation trading in primary market government securities (treasury bills) recorded oversubscriptions. The apex bank offered N15.106 billion worth of 91 daysÂ bills but total subscription stood at N17.066 billion.
Also the apex bank offered N15 billion worth of 182 bills which attracted subscription of N19.472 billion.
In the foreign exchange market, it was mixed fortunes for the naira as it further depreciate against the dollar at the official segment but appreciated in the inter bank market.
At the official market foreign exchange demand rose by one tenth to $806 million from $715.16 million in the previous week. Total amount sold stood at $600 million, up from $592.86 million. Consequently, the Naira fell by 28 kobo as the official exchange rate rose to N150.6 from N150.32 per dollar. But at the interbank foreign exchange market the Naira was helped by $400 million supply by Nigeria National Petroleum Corporation (NNPC). As a result interbank foreign exchange rate fell to N154.28 from N156.76 per dollar indicatingÂ 248 kobo appreciation