Overnight rates under intensive pressure climb to 30 per cent

The overnight rates continued trading under intensive pressure to close the Friday business with highest rate traded at 30 per cent.

The market saw the lowest offered overnight rate was at 27 per cent from the previous 22 per cent reported a day before. 

The Weighted Average rate closed at 27.26 per cent being an increase from 24.92 per cent of previous market. 

Standard Chartered HQ in Dar es Salaam

“Liquidity remains a main challenges for interbank as market continue to be under intense pressure to fund their books. The shilling liquidity tightness continued,” Standard Chartered Bank said in a Daily Market statement:

“In the turn of events which worsened the situation, National Microfinance Bank (NMB) pulled all money extended to interbank players to settle some obligations. 

“This caused much pressure on players since NMB was the key liquidity provider and their absence is expected to see market rates spiking further”.

NMB is the largest bank in term of profitability in 2011.

Source: tzexchange.blogspot.com

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