The scarcity of funds in the interbank money market worsened last week following a sharp decline of 72 per cent in market liquidity to N56.3 billion.
Analysis of data from the Central Bank of Nigeria, CBN, showed that the amount of liquidity (Opening balance) dropped to N56.3 billion on Friday last week from N200.64 billion Friday the previous week, translating to 72 per cent week-on-week (w/w) decline.
The sharp decline was aggravated by significant outflow out of the market namely, N67.59 billion through CBN’s Open Market Operations (OMO) treasury bills auction on Wednesday, and N192.76 billion through the FGN Bond auction conducted by the Debt Management of Office (DMO) during the week.
The outflow moderated the impact of N85 billion inflow through matured OMO treasury bills during the week.
Consequently, cost of funds remained elevated in the interbank money market, with marginal decline compared to the previous week.
