The Central Bank of Nigeria (CBN) has enhanced liquidity in the market by repaying N806bn worth of matured bonds and Treasury bills, according to financial market dealers.
Apex bank boosts liquidity with N806bn bond repayment
The move resulted in reduction of the overnight lending rates to six per cent on Friday from 12.25 per cent the previous week.
“The market liquidity was boosted by repaid matured bonds and treasury bills worth about N806bn naira ($4bn), but because of the technical fault, many traders were unable to transfer or place money in the market,” a dealer told Reuters.
Traders in the market added that there could be further delay in transactions this week due to the glitch.
“We hope the technical issue would be resolved by next week, otherwise it could threaten settlement in the market and stall trading,” another dealer said.
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According to the Head, Investment Research, Afrinvest West Africa Limited, Ayodeji Ebo, the repayment of matured bonds and bills would continue to impact the market in coming days.
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