Nigerian interbank rates fall, seen up next week on CRR debit

Nigerian interbank lending rates eased slighty on Friday to an average of 10.75 percent, from 11 percent last week, traders said, but they are seen rising next week on a coming central bank debit to meet cash reserves requirements (CRR).

AG CBN Gov, Alade

About 220 billion naira ($1.33 billion) in matured Open Market Operations (OMO) was repaid by the central bank on Thursday, swelling liquidity in the banking system.
The cash balance that lenders hold at the central bank opened at a positive 446 billion naira on Friday, up from 340 billion naira last week.
The secured open buy back (OBB) rate eased to 10.5 percent, from 11 percent last week, 1.5 percentage points below central bank's benchmark rate of 12 percent.
Overnight placement fell to 10.75 percent, compared with 11 percent, while call money closed flat at 11 percent.
"The CRR for February is expected to be debited by Wednesday and if the central bank intensifies issuance of OMO debt notes next week, lending rates should be up to around 11-12 percent for overnight," one dealer said.
Nigeria's central bank last month raised CRR on public sector deposits to 75 percent, from 50 percent, in a bid to further support the ailing naira currency. The regulator is due to debit banks' account for the CRR on Wednesday next week.