Interbank rates mixed as liquidity shortfall in the banking system declined following huge inflows from Nigerian bond coupon payments at the beginning of the week.

The banking system had plunged into deficit following outflows for OMO bill settlement, net Treasury bills, and cash reserves maintenance debit. Liquidity shortage raised banks borrowing appetite, with about N5 trillion raised from the Central Bank of Nigeria’s (CBN) standing lending facility last week.

On Monday, money market rates diverged despite inflows from coupon payments totaling N56.8 billion. This bond payment credit boosted liquidity levels, though the short-term rates remained elevated.

The Nigerian Interbank Offered Rate (NIBOR) increased across all tenors, indicating tighter liquidity conditions. Meanwhile, key money market indicators showed a mixed trend, as the open repo rate (OPR) declined by 0.06% to 32.26%, while the overnight lending rate rose by 0.04% to 32.79%.

Analysts expect interbank rates to stay at current levels, despite the promissory note maturity that is anticipated to be credited to the system. #Interbank Rates Diverge as Liqudity Pressures Ease with Coupon Payment Dangote Cement Price Slump Presents 69% Upside Potential – Analysts