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 in the previous week.

The projected inflow represents 18 per cent week-on-week increase, with Open Market Operations (OMO) maturities accounting for the bulk of the expected funds.

The FMDA, in its Weekly Market Snapshot stated: “Looking ahead, an estimated N3.56 trillion is expected to flow into the financial system this week, with OMO maturities accounting for about 86 per cent of projected inflows.”

OMO maturities, FMDA said are expected to provide N3.06 trillion, compared with N2.94 trillion last week, while Treasury Bills maturities are projected at N449.76 billion, significantly higher than the N71.37 billion recorded in the previous week.

“Other inflows include N39.65 billion from FGN bond coupons, N5.87 billion from corporate bond coupons and N8.47 billion from commercial paper maturities.  However, the expected inflow comes amid tighter liquidity conditions, with system liquidity falling 47.12 per cent week-on-week to N2.46 trillion, from N4.67 trillion,”it said.

The FMDA attributed the decline to the Central Bank of Nigeria’s (CBN) liquidity management operations, noting that the apex bank “sterilised approximately N5.46 trillion via OMO and NTB auctions. 

Meanwhile, the naira remained resilient, with the NFEM rate averaging N1,324.95/$, while the parallel-market rate averaged N1,394.40/$.

The FMDA also noted that average Brent crude rose 8.06 per cent to $101.67 per barrel, while external reserves increased 0.52 per cent to $54.41 billion.