Nigerian interbank rates rise on CRR withdrawal

Nigerian interbank lending rates climbed 6.5 percentage points on Friday to 15.75 percent on average from 9.25 percent last week, after the central bank debited commercial lenders' account to meet the banks' cash reserves requirement (CRR) this week.
Traders said the central bank withdrew about 167 billion naira ($861.7 mln) on Wednesday, draining liquidity.
Nigeria's central bank requires commercial lenders to set aside 75 percent of public sector and 15 percent of public sector deposits in liquid cash in their account with it. The regulator debit banks accounts every months to enforce this requirement.
Banks' cash balance with the central bank dropped to about 64.6 billion naira on Friday, compared with 393 billion naira last week.
"We see rates rising further next week due to anticipation of further liquidity drain from NNPC (the state-owned energy company) cash withdrawal and funding for bond sales," one dealer said.
The secured Open Buy back rose to 15.5 percent from 9 percent last week, 2.5 percent above the central bank's 13 percent benchmark interest rate.
The overnight placement also closed higher at 16 percent from 10 percent last week.