L
LequteMan
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Overnight lending rates among banks skyrocketed yesterday as government funds flowed out of the banking system following the implementation of the Treasury Single Account (TSA) as directed by the President Muhammadu Buhari-led government.
Although the rates for the longer tenured lending rose marginally, overnight rate rose by 84.29 per cent to 91 per cent at the close of business yesterday, from the single digit which it was on Monday. That was after dealers said bids were initially quoted at 200 per cent.
Three months’ lending rates among banks rose slightly by 1.07 per cent to 16.2805 per cent while 3- and 6-month rates rose by 0.63 and 0.36 per cent to 16.7992 and 17.8889 per cent respectively. The value of the naira depreciated at the interbank market from N197.05, which it was on Monday, to sell at N199 to the dollar.
Traders said banks had made no bids on the interbank money market by yesterday as they awaited instructions on how to comply with a directive to transfer government revenues into a single account with the Central Bank of Nigeria (CBN).
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Source: Leadership
Although the rates for the longer tenured lending rose marginally, overnight rate rose by 84.29 per cent to 91 per cent at the close of business yesterday, from the single digit which it was on Monday. That was after dealers said bids were initially quoted at 200 per cent.
Three months’ lending rates among banks rose slightly by 1.07 per cent to 16.2805 per cent while 3- and 6-month rates rose by 0.63 and 0.36 per cent to 16.7992 and 17.8889 per cent respectively. The value of the naira depreciated at the interbank market from N197.05, which it was on Monday, to sell at N199 to the dollar.
Traders said banks had made no bids on the interbank money market by yesterday as they awaited instructions on how to comply with a directive to transfer government revenues into a single account with the Central Bank of Nigeria (CBN).
click here to read more
Source: Leadership
