Nigerian interbank rates ease slightly on ample naira cash

 Nigerian interbank lending rates eased marginally to an average of 10.5 percent week-on-week on Friday, compared with 10.75 percent on average last week, supported by ample naira liquidity from matured open market operations (OMO) debt.

Sanusi, CBN gov

Traders said although the central bank debited about 74 billion naira ($466.88 million) to meet the cash reserves requirement (CRR) from banks' accounts on Wednesday, about 156 billion naira in matured OMO debt notes were re-injected to the market on Thursday.
Nigeria increased CRR on public sector deposits with banks to 50 percent, from a previous 12 percent, in July.
"The market is very liquid presently and this should continue to support rates at the prevailing level in the near term," one dealer said.
The market opened with a cash balance of about 417 billion naira on Friday, compared with 522 billion last Friday.
The open buy back (OBB) was flat at 10.25 percent, 1.75 percentage points below the central bank's benchmark interest rate of 12 percent.  
Overnight placement closed at 10.75 percent, the same as last week, while call money eased to 10.75 percent compared with 11 percent last week.
Traders said the market anticipates the state-owned energy firm will withdraw a portion of its cash deposits with banks to its central bank account next week, but additional cash flows from matured treasury bills should counter the impact on rates.