Interbank Rates Fall as FGN Coupon Payments Enhance Liquidity
Samuel Mobolaji
Interbank rates in the money market declined following inflows from Federal Government of Nigeria (FGN) bond coupon payments, which significantly boosted liquidity in the financial system.
Analysts noted that the FGN coupon payment totaling N28.22 billion helped saturate a financial landscape that had recently plunged into negative territory.
As a result, money market rates, which had been on an upward trend due to negative liquidity caused by several auction sales by the debt authority, experienced a reversal today.
The Nigerian interbank offered rate (NIBOR) dropped across all maturities, reflecting improved liquidity in the banking sector, according to Cowry Asset Limited.
Data from the FMDQ platform revealed that key money market rates, including the Open Repo Rate (OPR) and the Overnight Lending Rate (O/N), fell by 0.17% and 0.33%, closing at 32.19% and 32.67%, respectively.
Analysts also observed mixed movements in the Nigerian Interbank Treasury Bills True Yield (NITTY) across all maturities, while the average secondary market yield on T-bills moderated by 0.04%, settling at 23.11%.
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