Nigerian interbank rates ease on expectation of budget disbursal

Nigerian interbank lending rate eased to an average of 15.25 percent on Friday, from 42.5 percent last week, after some lenders rediscounted their treasury bills to access some cash and dealers anticipated a budget disbursal.The overnight lending rate had climbed to 80 percent on Tuesday, as banks scrambled for naira cash to pay for their foreign exchange purchases and meet other obligations."Many banks rediscounted their treasury bills holdings to get some cash support ... and this helped to eased the pressure on the market," one dealer said.The...

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Yields rise over 200 basis points at Nigeria debt auction

Nigeria sold 53.50 billion naira worth of sovereign debt at an auction on Wednesday, where yields climbed more than 200 basis points across the board on paper with maturities ranging between 3-year and 20-year.The Debt Management Office (DMO) said it sold 7.5 billion naira in the 3-year debt note at 15.49 percent, compared with 12 percent at the previous month's auction. The debt office had initially offered 10 billion naira of the 3-year bond.It sold 18 billion naira worth of 10-year paper at 15.2 percent, against 12.8 percent at the previous...

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Nigerian central bank restricts dollar holdings to curb speculation on naira

Nigeria's central bank has barred banks from holding their own funds in dollars in order to end speculative pressure on the ailing naira currency, the governor said on Thursday.Godwin Emefiele told Reuters in a phone interview that he believed the current naira band, set last month, was "appropriately priced at this time", signalling a will to defend the currency, although it is currently trading below the band."We do not want speculators in this market any longer," he said. "The banks are not supposed to hold any funds (in dollars) of their own....

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Nigerian overnight interbank lending rate spikes to record high

Nigeria's interbank overnight lending rate spiked further by 20 percentage points on Tuesday to 80 percent following drop in liquidity on large naira cash withdrawal by the state-owned energy company."The NNPC withdrew more cash from the system today, hitting hard on some banks, which have to resort to borrowing heavily from other banks to cover their position," one dealer said.NNPC last week sold about $300 billion naira to some lenders as part of its usual month-end dollar sales and put the naira proceeds into its account with the central bank.The...

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Nigerian overnight rate up to 60 pct on NNPC withdrawal

Nigeria's interbank overnight lending rates spiked 15 percentage points on Monday to 60 percent, from 45 percent on Friday, after the state-owned energy firm recalled a portion of its deposits with commercial lenders to its account with the central bank, traders said.NNPC last week sold about $300 billion naira to some lenders as part of its usual month-end dollar sales and put the naira proceeds into its account with the central bank."Lending rates went up today because of the NNPC cash recall and payments for foreign exchange purchased at the...

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Nigerian naira gains on oil firms' dollar sales

Nigeria's naira firmed against the dollar on the interbank market on Monday, supported by dollar sales by two energy companies and a naira cash shortage in the banking system, traders said, adding that they expected further gains this week.The local currency closed at 178.70 to the dollar, 0.66 percent firmer than 179.90 it closed at Friday.A unit of French oil company Total sold $74 million to some lenders, while Nigerian Liquefied natural Gas (NLNG) company sold an undisclosed amount, boosting dollar liquidity."The market was a bit calmer today...

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Nigerian bond yields to rise, Kenya's to hold steady

Yields on Nigerian bonds are expected to rise next week with investors expected to cut back on their positions before the year-end in order to raise local currency for their obligations.Nigeria's local debt market has experienced a sell-off in recent weeks on concerns about falling global oil prices and their impact on the local currency, which has lost about 11 percent against the dollar this year.The central bank devalued the naira by 8 percent in a one-off move last week as it sought to stem a slide in the country's foreign exchange reserves...

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Nigeria naira at new record low after cbank sells dollars at its new band

Nigeria's naira hit a new record low against the dollar on Tuesday, sliding further away from the central bank's new target band as demand for the greenback continued unabated, dealers said.The unit eased to a low of 187.55 naira on the interbank market in volatile trades shortly after the market opened, as dealers scrambled to fill demand orders not met at a central bank auction the previous day.The central bank sold dollars at its new target mid-band of 168 naira at an auction on Monday and depreciated the currency by 1.78 percent from 165 naira...

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