Access Bank’s fixed income dealer explains why interbank rates will remain depressed
By
Emmanuel Abara Benson
-
April 25, 2020
Experts have projected that the interbank rates at the Nigerian money market will remain depressed in the meantime. This is despite the bi-weekly retail auction that is expected to happen, and the high liquidity levels in the market which is said to be over N1 trillion.
The reason for this: According to Apkeve Oputu, a Fixed Income dealer at Access Bank Plc, the rate drop is due to a significant increase in the number of inflows into the money market which has been recorded recently.
Speaking on behalf of the tier-1 bank, Oputu highlighted the inflows as follows;
• There was a retail refund of about N250 billion earlier in the week.
• There was also a FAAC inflow of about N339 billion on Thursday.
• In the same vein, a net OMO credit of N129 billion came into the market.
• A bond coupon payment of N34 billion was also recorded.
All of these have affected the rate within the market, even as the OBD and overnight rates declined as low as 1.8% and 2.9%, respectively, she said.
Source:https://nairametrics.com/2020/04/25...ns-why-interbank-rates-will-remain-depressed/
By
Emmanuel Abara Benson
-
April 25, 2020
Experts have projected that the interbank rates at the Nigerian money market will remain depressed in the meantime. This is despite the bi-weekly retail auction that is expected to happen, and the high liquidity levels in the market which is said to be over N1 trillion.
The reason for this: According to Apkeve Oputu, a Fixed Income dealer at Access Bank Plc, the rate drop is due to a significant increase in the number of inflows into the money market which has been recorded recently.
Speaking on behalf of the tier-1 bank, Oputu highlighted the inflows as follows;
• There was a retail refund of about N250 billion earlier in the week.
• There was also a FAAC inflow of about N339 billion on Thursday.
• In the same vein, a net OMO credit of N129 billion came into the market.
• A bond coupon payment of N34 billion was also recorded.
All of these have affected the rate within the market, even as the OBD and overnight rates declined as low as 1.8% and 2.9%, respectively, she said.
Source:https://nairametrics.com/2020/04/25...ns-why-interbank-rates-will-remain-depressed/