By Obinna Chima
The overnight tenor of the Nigerian Interbank Offered Rates (NIBOR) dropped to five per cent on Friday, from 15 per cent the preceding Friday due to inflow of cash from the Federation Accounts Allocation Committee as well as from maturing treasury bills.
The increased cash flow left the money market with a N267.10 billion surplus balance on Friday, reversing the N300 billion shortfall of a week ago and pushing down the cost of borrowing among commercial lenders.
Last week, financial system liquidity opened at N168.1 billion as the open buy back (OBB) and overnight rates rose 8.8per cent and 10.8 per cent to close at 28 per cent and 32per cent respectively at the end of Monday’s trading session.
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