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Content about Financial markets

October 14, 2011

The market had expected $700million from the NNPC but the corporation sold it to the CBN instead

Dealers at Nigeria's forex interbank market says trading halted on Thursday, due to a Dollar shortage, after the Nigerian National Petroleum Corporation (NNPC) sold Dollars meant for lenders to the Central Bank of Nigeria (CBN).

According to them, the market had expected around $700 million from the NNPC, to boost Dollar liquidity at the interbank, but instead the corporation sold the Dollars to CBN.

Dealers had expected the unit to close firmly to the auction rate on Thursday, instead interbank market weakened to N160.70 on thin volumes at mid-day.

October 10, 2011

The Committee has received a barage of petitions from aggrieved stakeholders, particularly investors in the capital market who lost their investments in the process. 

The House of Representatives Committee on Capital Market has indicted the Nigeria Deposit Insurance Corporation (NDIC) and the Securities and Exchange Commission (SEC) of impunity in the recapitalisation and nationalisation of banks. It has subsequently called for a total overhaul of the capital market institutions in the country.

September 24, 2011

Nigerian interbank lending rates climbed to an average of 11.66 percent this week from 10.75 percent the previous week after the central bank hiked its benchmark rate by 50 basis points to 9.25 percent

Nigeria on Monday raised its benchmark interest rate for the fifth time this year to 9.25 percent to tackle future upward inflationary pressure and expectations of continued high government spending.

Dealers said the market balance is in the negative with more banks now borrowing from the central bank's discount window, using their treasury bills and bonds holdings as collateral.