Nigeria interbank rates ease for 2nd wk on matured bills

Nigerian interbank lending rates eased for the second consecutive week to an average of 11.83 percent, compared with 12 percent last week, on refunds from overpaid cash reserves and repayment of matured open market operation (OMO) debt.
   Traders said some banks were refunded excess cash debited for cash reserves for last month, while about 140 billion naira ($871.19 million) repaid in matured OMO bills boosted liquidity and helped ease lending rates.
   The market opened with a cash balance of about 420 billion naira on Friday, against 367 billion naira the previous week, traders said.
   "In a bid to soak liquidity from the system, the central bank sold about 100 billion worth of OMO bills yesterday and offered another 100 billion today, but the market is sufficiently liquid to support transactions," one dealer said.
   The secured Open Buy Back (OBB) closed flat at 11.5 percent on Friday, 50 basis points below the central bank's benchmark interest rate of 12 percent.  
 Overnight placement was unchanged at 12 percent, while call money closed at 12 percent, compared with 12.5 percent last week.
   "We expect rates to hover around 12-13 percent on average next week because of the two days public holiday, which will reduce the number of trading days," another dealer said.
   Nigeria has declared Tuesday and Wednesday next week a public holiday for a Muslim celebration.