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Interest rates rise as banks, naira dealers scramble for funds

Interest rates rise as banks, naira dealers scramble for funds
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Breaking News | Mixed Outlook As Cost Of Funds Defies N515bn Inflow

Views: Visits 7 By Babajide Komolafe Cost of funds in the interbank money market   rose to 19.2 per cent last week, defying N515 billion inflow during the week. The inflow comprised N110 billion from matured secondary market (Open Market Operations, OMO) treasury bills, N14.91 billion from FGN Bond Coupon payment and statutory allocation of N390 billion from Federation Accounts Allocation Committee (FAAC)   to the state. READ ALSOConfession video of ESN member: Nnamdi Kanu is 419, he should lead from Nigeria The impact of the inflow was, however, cancelled by outflow comprising N87.95 billion through Nigerian Treasury Bills (NTB) issuance, N41 billion through OMO bills auction,  debit for Cash Reserve Ratio (CRR) and foreign exchange auction.

Treasury Bill Rate Closed Flat as Investors await MPC Decision |

Treasury bill rate closed flat on Monday as fixed income securities investors await the outcome of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) meeting. Last week, activities at the Nigerian treasury bill secondary market traded on a bearish note, consequently, average yields expanded by 70 basis

Banks escalate borrowings from CBN by 174% to N2 4trn -

Cost  of funds hits 2yrs high By Babajide Komolafe In apparent reflection of the intense scarcity of funds that prevailed in the interbank money market in April, banks’   borrowing from the Central Bank of Nigeria (CBN) rose by 174 per cent to N2.48 trillion from N904.6 billion in March. The banks’ deposits with CBN also declined significantly. Banks borrow from the CBN through its Standing Lending Facility (SLF)  to fund short term liquidity cash shortfall. They, however, deposit their idle cash in  the apex bank’s Standing Deposit Facility (SDF). Financial Vanguard  findings in the CBN’s data release show that while banks’ borrowing through the SLF rose sharply by 174 per cent in April, their   deposits with the apex bank through   the SDF fell by 57 per cent to N169.74 billion in April from N392.37 billion in March.

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