Inter-bank rates fall on back of N673bn FAAC fund  

Inter-bank rates on Thursday dropped 2.34 percent from 52.93 percent to 51.70 percent due to inflow from the Federation Accounts Allocation Committee (FAAC) to the tune of N673 billion shared by the Federal Government, states and local governments.

Consequently, the Nigerian Inter-Bank Offered Rates (NIBOR) for overnight tenor declined to 11.37 percent from 12.00 percent the previous day. Also, 1 month, 3 months and 6 months tenors dropped from 12.70 percent, 13.69 percent and 14.52 percent the previous day to 12.53 percent, 13.49 percent and 14.32 percent, respectively.

Naira on Thursday weakened against the US dollar as it lost N0.25k at the inter-bank market to close at N163.80/$ compared to N163.55/$ the previous day, according to data obtained from Financial Markets Dealers Quotations (FMDQ).

Currency dealers attributed the naira depreciation to increased demand for the greenback by end users.

Meanwhile, the CBN on Wednesday offered a total of $300 million but sold a total of $299.8 million to 19 deposit money banks at the rate of N155.75/$ at its bi-weekly Retail Dutch Auction System (RDAS).