The Central Bank of Nigeria, CBN, sold N107.64billion in Treasury bills on Friday in a move to soak up excess liquidity from the banking system and curb pressure on the Nigeria Naira.
According to reports, the CBN sold N54.42bn in the 167day Open Market Operations Treasury bills at 18 per cent and N55.22bn paper at 18.5 per cent.
But the effect of the sale was countered by additional liquidity from the repayment of matured bonds forcing overnight lending rate down to five per cent on Friday from 30 per cent at the start of the week.
Traders said banking system liquidity was N246billion in credit on Friday, up from N206.96billion in deficit a week ago. [Central Bank of Nigeria]
On the forex market, the naira eased on the black market to N390 per dollar and held steady on the official market at N305.85.