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Economy

Interbank Rate Jumps to 12.17% Despite Absence of OMO Auction

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By Modupe Gbadeyanka

Nigeria’s overnight interbank lending rate rose sharply on Friday despite the Central Bank of Nigeria (CBN) not conducting an Open Market Operations (OMO) auction.

This, Business Post reports, may be due to the banks’ funding for CBN forex auction earlier in the day.

Our correspondent reports further that the overnight rate jumped to 12.17 percent on Friday from 4.67 percent on Thursday.

Also, the Open Buy Back (OBB) rate increased to 11.60 percent yesterday from 3.83 percent recorded the previous day.

As market players anticipate the resumption of OMO sale next Monday, the system liquidity is expected to remain positive with a further rise in the rates.

Meanwhile, the treasury bills market remained bullish yesterday with slight decline in yields especially on the short and medium tenured bills.

It was gathered that this was largely due to the absence of an OMO auction by the central bank on Friday.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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