Nigeria Financial Update – Feb 9, ’09

OBB and Overnight rates opened last week at 9.25% and 11.75%, rose to 9.75% and 15.0% during the week, and closed the week at 8.0% and 13.5% respectively. The Naira gained N1.25 at the FX interbank market last week. It opened the week at N148.90/N149 and closed at N147.65/75 on bid and offer respectively.

Faced with tight liquidity in the economy as well as a looming global financial crisis, the bank is expected to leave its Monetary Policy Rate (MPR) unchanged at 9.75%. The CBN Governor, Charles Soludo recently confirmed that the country cannot have a low interest rate regime given the level of inflation at 15.10%.