The
end quarter tax obligation has pushed up overnight rate to two month high as
banks turn to wholesale market for funding.
Standard
Chartered Bank said the overnight rates increased to 19.50 per cent with some
banks seen picking shillings as high as 24 per cent.
The
bank said in Daily Market report “quarter end tax outflows saw the interbank
drying out with almost all banks turning into the wholesale market for funding.
“We
expect the interbank market to start regaining after the quarter end
obligations are over with expectations government operations will inject
liquidity back into the market”.
Meanwhile,
the Bank of Tanzania is offering the seven-year 10.08 per cent coupon bond to
take place this Wednesday. The amount on offer is 25bn/-.
Source:
Standard Chartered Bank—Daily Market Report
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