Banking system liquidity drops N930bn as overnight rate rises

According to the People’s Gazette, liquidity in the banking system fell by N930 billion to N3.66 trillion, down from N6.81 trillion recorded on August 11. The apex bank’s latest money-market data, published Friday, attributed the decline to settlement of its Treasury Bills auction.

The overnight lending rate rose two basis points to 22.20 per cent, while the open buy back rate held steady at 22.00 per cent. August’s surplus followed a N2.48 trillion inflow from matured open market operations securities. Despite the drop, the CBN noted the financial system remains in surplus, with liquidity at N3.66 trillion as Friday’s market opened.