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Interbank Rates Drop Further, Amidst Liquidity

Rates in Nigeria’s interbank money markets dropped further on Tuesday, amidst increased Liquidity, with the overnight and Open Buy-Back rates closing at 7.50% and 8.58%.
Payment of coupon inflows is expected to hit the system to the tune of N34.71bn, even as Interbank rate closing flat at N305.80/$

Bonds Market
It experienced weak demand on most tradable FGN bond. Some traders sold down on the long end of the curve . However, participants were very uncertain about the direction of yields .

Treasury Bills
Market witnessed huge demand, riding on the back of improved system liquidity, with investors taking strategic position as they reinvested bond coupon payments.

Rates dipped by 25 basis point on the average across trading benchmark securities, just as demand was witnessed in the short to medium end of the curve.
The trend is expected to continue owing to excess Liquidity in the system.we also expect CBN to offer Primary market auction tomorrow. The last stop rate for 91,182 and 364 were 10, 10.3 and 11.50 respectively.We expect the stop rates to close lower than the previous auction due to system liquidity.
The Debt Management Office (DMO) is expected to rollover N5.85bn, N26.60bn and N145.96bn of the 91-day, 182-day and 364-day bills on Wednesday.

Analyst: Judith Idialu, judyodegua@yahoo.com

CBN Injects Fresh $210m In Sustained Fx Intervention

The Central Bank of Nigeria (CBN), on Tuesday, July 17, 2018 injected the sum of $210 million into the inter-bank foreign exchange (forex) market.

A breakdown showed that while $100m was offered to authorized dealers in the wholesale segment of the market, Small and Medium Enterprises (SMEs) got $55m, same as invisibles like tuition fees, medical payments and Basic Travel allowance (BTA).

A statement by Isaac Okorafor, Acting Director of Corporate Communications Department at the CBN, who confirmed the figures, stressed the apex bank’s resolve to continue intervening in the interbank foreign exchange market.

This, he assured, is in line with its pledge to sustain liquidity in the market and maintain stability.
Okorafor maintained that the continued forex intervention is to ensure that the CBN meets genuine customers’ requests across the various segments of the market.

Tuesday’s intervention followed a similar one on Tuesday, July 10, 2018, to cater for requests in the wholesale segment of the market.
Meanwhile, the naira continued to exchange at an average of N360/$1 in the Bureau De Change (BDC) segment of the market on Tuesday, July 17, 2018.

https://investdata.com.ng/2018/07/cbn-injects-fresh-210m-in-sustained-fx-intervention/#more