Nigeria's overnight interbank rate rose for the second consecutive week to an average of 6 percent on Friday, from 4.5 percent last week, amid a drop in commercial lenders liquidity level on payment for treasury bills purchases, but rate seen falling next week on budgetary disbursal. Nigeria sold a total of 167.51 billion naira ($841.76 million) worth of debt with maturities ranging between three months and one year, while payment for the purchase is due on Friday.
Traders said the cost of borrowing among banks has declined progressively this week from last week's close after the central bank asked commercial lenders to make provisions for foreign exchange purchases on Wednesday, and the fact that no cash was flowing into the banking system. Traders said liquidity level stood around 232.85 billion naira ($1.17 billion) on Thursday, down from 414 billion naira last week.
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