Movement of interbank interest rates will be mixed this week due to further outflow through Treasury bills and foreign exchange funding, and a possible injection through statutory allocation funds. Last week, rates at the Inter-bank money market was relatively low in the week, averaging 1.000% until the last trading day.
In the last trading day, rates went up significantly, recorded 400 -500 basis points increase across all tenors. Though rates were expected to go up mid-week as a result of the provisioning for Foreign Exchange and Treasury Bills totaling N118.8 billion, but not with the magnitude recorded – 6.1667% for Call and 6.9583% for 7 days money.
Activities in the market also experienced slowed down as a result of technical challenges with CBN T24. Further insight in the week showed that the market opened at 1.1583% for Call and 2.0000% for 7 days money, a relatively low rate when compared with the closing prices for the last trading day last and corresponding day last week. it however
increased marginally across all tenor at the subsequent trading days.
On Thursday the increase in the rates was higher than the increase for Tuesday and Wednesday. Market opened with liquidity worth N401.00bn. The market balance as at the close of the week is expected to dwindle due to the provisioning.