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Nigeria mops up liquidity to support naira as overnight rate eases
April 28, 2017 / 4:59 PM / 6 months ago

Nigeria mops up liquidity to support naira as overnight rate eases

LAGOS, April 28 (Reuters) - Nigeria sold 107.64 billion naira ($353 million) in treasury bills on Friday in a move to soak up excess liquidity from the banking system and curb pressure on the currency, traders said.

The central bank sold 54.42 billion naira in the 167-day open market operations (OMO) treasury bills at 18 percent and 55.22 billion naira paper at 18.5 percent, traders said.

But the effect of the sale was countered by additional liquidity from the repayment of matured bonds forcing overnight lending rate down to 5 percent on Friday from 30 percent at the start of the week.

Traders said banking system liquidity was 246 billion naira in credit on Friday, up from 206.96 billion naira in deficit a week ago. The money markets were also expecting the monthly government budget disbursement next week.

On the forex market, the naira eased on the black market to 390 per dollar and held steady on the official market at 305.85.

$1 = 304.85 naira Reporting by Oludare Mayowa; Editing by Chijioke Ohuocha

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