The banks in Nigeria have deposited a total of N2.5 billion with the Central Bank of Nigeria (CBN) through the permanent deposit installation (SDF), which indicates an important step in liquidity management as institutions sought to maximize the yields of excess funds in the middle of a dynamic monetary policy environment.
The significant entry into the SDF last week reflected greater caution in the interbank market and a strategic preference by the banks to park the liquidity of the surplus with the CBN at relatively attractive interest rates. This movement occurs at a time when the liquidity of the system closed the week in a deficit of N119.9 billion, which represents a decrease of 42.0 percent week after week, according to market analysts.
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Liquidity compression was largely attributed to the heavy output flow in the CBN deposit window, which exceeded the banks to which the banks accessed the banks through the installation of permanent loans (SLF) during the same period.
Despite liquidity pressures, interbank rates decreased slightly, with open purchase rates (OBB) and during the night (OVN) closing the week with 26.4 percent and 26.9 percent, respectively, below 26.5 percent and 27.0 percent the previous week. This suggests some relaxation in financing costs, even when general liquidity remained limited.
The analysts pointed out that the preference of the banks through the deposit window on the loans reflects a cautious posture in the middle of continuous economic adjustments, hardening by the Apex bank and the efforts to stabilize inflation and change rates.
The SDF and SLF tools of the CBN remained key instruments in their monetary policy framework, which allows you to manage short -term liquidity while guiding interest rates in the financial system.