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Overnight Money Market Rate Surges to 59.25% Overnight Money Market Rate Surges to 59.25%

Economy

Overnight Money Market Rate Surges to 59.25%

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By Cordros Capital

Analysts at Cordros Capital have disclosed that the overnight money market rate surged 3675 bps to 59.25 percent, from last week’s 22.50 percent, reflecting tight liquidity position for the week.

The rate rose to as high as 107.75 percent during the week, the highest since June, before moderating to 52.21 percent on Thursday amid an inflow of N113.05 billion via matured OMO bills.

This week’s sizable expansion is attributable to the persistent withdrawal via OMO auctions held by the apex bank throughout the week save for Tuesday.

In all, N83.43 billion (vs. N180 billion offered) was sold, comprising N1.20 billion of the shorter-dated bills and N82.23 billion of the longer-tenured bills, at respective stop rates of 17.95 percent and 18.55 percent.

In addition, outflows via forex sale of $195 million further pressured liquidity.

 

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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