Deposit Money Banks borrowed N1.7tn from the Central Bank of Nigeria in the third quarter of 2020.

The CBN disclosed this in its third quarter economic report.

Part of the report read, “Deposit Money Banks and merchant banks continually accessed the standing facilities window to square up positions in 2020 Q3.

“The trend at the CBN standing facilities window indicated more activities at the Standing Deposit Facility window, compared to the Standing Lending Facility window, owing to liquidity surfeit in the banking system.

“Following the Monetary Policy Committee meeting of September 2020, applicable rates for the SLF and SDF changed from 14.5 per cent and 7.5 per cent to 12.5 per cent and 4.5 per cent respectively.

“Total SLF granted during the review quarter was N1.7tn, made up of N866.93bn direct SLF and N833.53bn Intraday Lending Facilities converted to overnight repo.

“Daily SLF ranged from N0.13bn to N384.41bn and averaged N58.64bn in 29 transaction days from July 1 to September 25, 2020.”

The report added, “Total SDF granted, during the review quarter was N1.76tn with a daily average of N27.55bn in 61 transaction days from July 1, 2020 to September 25, 2020.

“Daily request ranged from N0.73bn to N50bn. Cost incurred on SDF in the quarter stood at N0.51bn.”

On liquidity management, the report said CBN sold bills of tenors ranging from 75 to 362 days during the third quarter.

Total amount offered, subscribed and allotted were N640bn, N1.39tn and N625.13bn respectively, with a bid rate of 6.4 per cent, while the stop rate was 6.9 per cent.

Repayment of matured CBN bills stood at N3.29tn, translating to a net injection of N2.67tn through this medium.