LAGOS May 16 Nigerian interbank lending rates
rose to an average of 12.41 percent this week from 10.25 percent
last week after the central bank issued 200 billion naira
treasury bill to soak liquidity from the system.
Traders said the central bank mopped-up cash from the system
in the week to reduce liquidity pressure on the value of the
The local currency was trading at 162.20 to the
dollar on Friday, broadly flat from 162.45 at close the previous
The cash balance that lenders hold at the central bank
opened on Friday at 350 billion naira compared with 599 billion
naira last week.
The open buy back (OBB) was unchanged at 12.25 percent, 1.75
percentage points below the central bank's benchmark rate of 12
The overnight placement and call money climbed to 12.50
percent respectively from 10.25 percent each last week.
"We expect interbank lending rates to take a cue from the
outcome of Monetary Policy Committee (MPC) meeting next week,"
one dealer said.
The central bank MPC meet's on Tuesday with traders,
however, expecting no major decision shift on interest rate.
(Reporting by Oludare Mayowa; Editing by Bate Felix)