Nigerian interbank rates stable on budget, matured T-Bills

Nigeria interbank rates held steady at 6 percent on average on Thursday, unchanged from last week following an increase in cash flow to the banking system from budgetary allocations and retired Treasury bills.
Traders said about 284 billion naira ($1 billion) was injected into the system from budgetary allocations to government agencies, while an additional 227 billion naira was paid out in matured government debt, boosting liquidity and keeping interest rates at a lower level.
"The system was very liquid and many banks had sufficient cash to support their transactions this week," one dealer said.
Traders said though the central bank made frantic efforts to mop up excess funds from the interbank market by selling about 828 billion naira worth of Treasury bills, the market remained sufficiently liquid to keep the interbank rate low.
"We expect the system liquidity to open on Monday at around 600 billion naira," another dealer said.
The secured Open Buy Back (OBB) closed at 6 percent, same level last week, same for overnight placement, traders said.
Dealers said rates should remain unchanged next week, unless the central bank takes action by mopping up excess liquidity.