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Overnight Lending Rate Jumps to 8.17% on System Outflows for Forex Interventions

By Dipo Olowookere

The overnight lending rate significantly increased on Monday to 8.17 percent from 3.33 percent recorded in the last session.

This came on the back of system outflows for Wholesale foreign exchange interventions by the Central Bank of Nigeria (CBN).

This consequently squeezed system liquidity further to about N150 billion as at close of business yesterday.

Also yesterday, the open buy back (OBB) rate went up to 7.58 percent from 2.83 percent in the previous session.

According to analysts at Zedcrest Research, the rates are expected to decline slightly today as there are no significant funding pressures expected.

Meanwhile, the treasury bills market was scantily traded on Monday with slight sell witnessed on the shorter end of the curve, following outflows for wholesale FX interventions by the CBN.

Sentiments in the market are expected to remain mixed as market players anticipate another OMO auction on Thursday when N273 billion worth bills mature at the market.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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