LAGOS, March 10 Nigeria's overnight lending rate
dropped to around 12 percent on Friday from 16 percent a week
earlier as maturing bills and government budget disbursements
pumped more cash into the money markets.
Traders said the market opened on Friday with a cash balance
of 9 billion naira, against a deficit of about 2.3 billion naira
last week. The central bank repaid about 70 billion naira in
matured bills on Thursday to boost liquidity.
Borrowing costs in Africa's biggest economy reflect
liquidity in the money market, which tends to lead to lower or
higher rates depending on the number of borrowers.
The central bank sold around $200 million at a currency
intervention this week to clear a backlog of dollar demand on
the official interbank market.
(Reporting by Oludare Mayowa; Editing by Chijioke Ohuocha,