Nigerian interbank rates were flat at 10.58 per cent on average this week as the market was liquid enough to support all transactions Reuters has reported on .

All the three rates closed flat; with the secured Open Buy Back (OBB) at 10 per cent, 200 basis points above the benchmark rate and 4.0 percentage points over the Standing Deposit Facility (SDF) rate.

Overnight placement and call money were at 10.75 per cent and 11.0 per cent, respectively. The market had reacted to the hike last week in both the benchmark interest rate and cash reserve requirement by the central bank, pushing up the cost of funds despite the big balance in bankers’ accounts with the CBN.

The CBN raised its rate to 8.0 per cent from 7.5 per cent and the cash reserve requirement to 4.0 from 2.0 per cent, citing a need to rein in inflation and control surging liquidity in the system.

Bankers said rates could edge up to around 11 per cent on average next week following plans by NNPC to recall part of its deposits to its CBN account. “The market opened at about N149.19 billion ($956.6 million) on Friday and we expect the market to open short by next week because of the NNPC debiting which started today,” one dealer said.

The NNPC usually sells large sums of dollars to selected banks every month and recalls part of the proceeds to the CBN. “We see rates going up next week, partly because of the NNPC withdrawal, increase in cash reserve requirement, which becomes effective by Wednesday and treasury bills purchases,” another dealer said.

The indicative rates for the Nigeria interbank offered rate (NIBOR) however, fell against the trend at the short-term market, with the 7-day fund down to 11.08 per cent from 11.24 per cent last week. The 30-day funds dropped to 12.29 per cent from 12.41 per cent, the 60-day closed flat at 12.87 per cent, while the 90-day ended slightly higher at 13.37 per cent from 13.28 per cent.