Financial Markets Dealers: N3.56tn Liquidity Inflow Expected This Week
Nume Ekeghe the Financial Markets Dealers Association (FMDA) has stated that an estimated N3.56 trillion is expected to flow into Nigeria’s financial system this week, up from N3.02 trillion projected
Nigeria’s Financial Markets Dealers Association (FMDA) predicts a surge in liquidity inflows of N3.56 trillion into the nation’s financial system this week. This represents an 18 per cent increase compared to the previous week's projection of N3.02 trillion, marking a significant rise. According to the FMDA's Weekly Market Snapshot, Open Market Operations (OMO) maturities are anticipated to contribute about 86 per cent of the inflows, totaling N3.06 trillion.
Treasury Bills maturities are estimated to account for N449.76 billion, a substantial jump from N71.37 billion in the prior week. Additional sources of inflows include FGN bond coupons at N39.65 billion, corporate bond coupons at N5.87 billion, and commercial paper maturities at N8.47 billion. The expected influx occurs amidst tighter liquidity conditions, as system liquidity has plummeted by 47.12 per cent week-on-week to N2.46 trillion, down from N4.67 trillion.
The FMDA attributes this decline to the Central Bank of Nigeria's (CBN) liquidity management operations, which have sterilized approximately N5.46 trillion through OMO and NTB auctions. Despite these challenging conditions, the naira has shown resilience, with the NFEM rate averaging N1,324.95/$, while the parallel-market rate averaged N1,394.40/$.
Furthermore, the FMDA reports that Brent crude prices have risen by 8.06 per cent to $101.67 per barrel, and external reserves have increased by 0.52 per cent to $54.41 billion.
Written by urgent.news from This Day's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
