Nigerian interbank rates climb on big cash recall
Nigerian interbank
interest rates climbed to 9.91 percent on average this week from 5.83
percent last week, on a liquidity crunch triggered by a big cash
withdrawal by state energy firm, NNPC, traders said on Friday.
The secured Open
Buy Back rose to 8.25 percent from 5.0 percent, 200 basis points above
the Central Bank’s 6.25 percent benchmark rate and 4 percentage points
higher than the Standing Deposit Facility rate.
Overnight funds closed at 10.5 percent from 6.0 percent, while call money traded at 11 percent from 6.5 percent.
“We expect
interbank rates to climb further because there are going to be more
cash outflows from the system next week,” one trader said.
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