Liquidity at the money market fared better last week as overnight lending rates trended around single digit with a system liquidity that was in excess of N200 billion on the back of reduced mop up by the Central Bank of Nigeria (CBN) through Open Market Operations (OMO). Compared to the previous week when the CBN mopped up N259.39 through OMO auctions and Treasury Bills, the apex bank had mopped up N147.27 billion through a single OMO auction and Treasury Bills sales held towards the end of last week. Overnight lending rate fell to12.42 per cent, as inflows of N223.99 billion from the Federal Accounts Allocation Committee (FAAC) disbursement and N56.43 billion from maturing OMO bills outweighed outflows via OMO auction. Banks borrowing from the apex bank also dropped as they had more liquidity. Compared to N260.12 billion taken by banks through the Standing Lending Facility (SLF) window the previous week, banks’ borrowing through the window dropped to N248.91 billion last week. The taking of banks through the SLF window has been on a downward trend for two weeks now. Deposits was also on the decline as the amount that came into the CBN through the Standing Deposit Facility (SDF) dropped to N242.05 billion from N258.55 billion which came in from the banks the previous week. Traders say they expect the CBN to increase its liquidity mop up this week as the market looks forward to an inflow of N109.38 billion through maturing OMO bills. Meanwhile, the value of the naira strengthened last week selling at around N362 to the dollar at the parallel market from N363 which it had maintained for weeks in a row. At the Investors’ and Exporters’ window, the value of the naira also gained value as inflow increased. Total turnover in the I&E forex window had increased by 24.44 per cent last week $757.69 million. Traders said the bulk of the trades consummated last week was within the range of N360 to N369 to the dollar. The weakening of the dollar was also due to inflows of forex through interventions of the CBN. At the beginning of the week, the apex bank had injected $210 million into the forex market comprising $100 million, $55 million, and $55 million disbursements to the wholesale, SMEs, and invisibles windows, respectively. It also intervened in the Retail Secondary Market Intervention Sales (SMIS) to the tune of $321.4 million to meet dollar requests in the agricultural, airlines, petroleum products and raw materials and machinery sectors. Total value of open contracts at the FMDQ futures market closed at $3.4 billion, from $3.3 billion the previous week. The APR 2018 with contract price of $360.92 instrument was the most subscribed while the JAN 2019 instrument with contract price of $362.27 remained the least subscribed with total value of $18.5 million. The FEB 2018 instrument will be maturing this week and in line with trend, and traders say they expect the instrument to be replaced with a new contract. Also with external reserves at S$41.8 billion as at February 21, 2018 and the issuance of $2.5 billion Eurobond by the government coupled with the sustained stability global oil prices, traders say they are confident of the CBN’s continued ability to support forex market liquidity and stability.

http://www.akelicious.com/2018/02/liquidity-rises-as-cbn-slows-on-mop-up.html

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Is not that bad sha 2nd to comment shout out to all man united fans

3rd to comment gradually am getting there, Ftc not far again. Let me first dedicate this to all my fellow Arsenal fans, loose or win we'll remain gunners

please op, when posting articles, try space up your writing, imagine no paragraph, no spacing, nawao. did you do english in your secondary school at all?

just saying my mind o, do not attack me pls

How

Was it not this same website that brought out a 2016 news saying how dollar was equal to #310.

All these copy and paste bloggers, that's why before i read a news i check the source and the credibility of the source.

Also with external reserves at S$41.8 billion as at February 21, 2018 and the issuance of $2.5 billion Eurobond by the government coupled with the sustained stability global oil prices, traders say they are confident of the CBN’s continued ability to support forex market liquidity and stability.

That is the main takeaway from the above article.

Most nairalanders cant comprehend this shit including the copy and paste blogger

waiting for the economics experts to break it down to my level...

only if there would be sense in it anyway.

I'm only an architect!

wamiikechukwu:
Was it not this same website that brought out a 2016 news saying how dollar was equal to #310.

All these copy and paste bloggers, that's why before i read a news i check the source and the credibility of the source.

it is obvious these bloggers pay d mods. He copied from leadership news. Google wud never approve him so he just dey waste his time

yeyerolling:
it is obvious these bloggers pay d mods. He copied from leadership news. Google wud never approve him so he just dey waste his time

Lol.... I believe his a new blogger because when he sees his ranking 300+ he will just give up.

Google ranks fresh content not copy and paste.

When started blogging, it was difficult writing my own articles but now, i get traffic from Google search.

foliman:
waiting for the economics experts to break it down to my level...

only of there would be sense in it anyway.

I'm only an architect!

Am only a computer scientist, but i love the financial market alot.

naija

Okay

Spartanville:
3rd to comment gradually am getting there, Ftc not far again. Let me first dedicate this to all my fellow Arsenal fans, loose or win we'll remain gunners

sure

hmm....if these slow is allow to manifest further I pity the dollar n naira exchange rates......

Op there is something called paraphrasing ,use it.
Your copy and paste,can cause headache.

wamiikechukwu:



Lol.... I believe his a new blogger because when he sees his ranking 300+ he will just give up.

Google ranks fresh content not copy and paste.

When started blogging, it was difficult writing my own articles but now, i get traffic from Google search.

The ops have all it takes to be a better blogger if only you encourage someone. When you started it was difficult writing your articles because you also copied and paste and was 300+ too. Just Help them okay.

Good