Nigeria’s money market expects 2.813tn naira
By the AFREEQUE newsroom, based on ThisDay
Illustrative image · Yan Krukau · Pexels · Licence PexelsNigeria’s money market is expected to receive 2.81 trillion naira this week, mainly through maturing open market operations. The Nigerian Debt Management Office is also offering 800 billion naira in Treasury bills, with settlement scheduled for 29 October, according to the financial markets dealers’ association.
Nigeria’s money market is expected to receive 2.813 trillion naira in liquidity this week, while the Debt Management Office (DMO) is offering 800 billion naira in Treasury bills on 28 October, according to the Financial Markets Dealers Association (FMDA), cited by ThisDay. The offer comprises 100 billion naira in 91-day securities, 100 billion in 182-day securities and 600 billion in 364-day securities; settlement is scheduled for 29 October.
Maturing open market operations represent the main source of the expected inflows, at 2.408 trillion naira. They are joined by 263.58 billion naira in federal bond coupons, 130.72 billion naira in maturing Treasury bills and 10.923 billion naira in corporate bond coupons, according to the FMDA.
Financial system liquidity rose by 10.39% the previous week, to 6.936 trillion naira, after increasing by 69.39% the week before. Monetary sterilisation operations partly offset the inflows: the federal bond auction settled on 21 October raised 2.024 trillion naira, while the open market operation on 22 October raised 2.629 trillion.
Despite the slowdown in liquidity growth, the average Treasury bill yield fell by 59 basis points last week, to 17.64%, ThisDay reports.
