By now, the coffer of the Central Bank of Nigeria (CBN) is expected to be robust as banks who borrowed money from the apex bank in their period of crisis have continued to pay back. Recently, a total of N5 billion worth of 12-day maturity was withdrawn through the Expanded Discount Window (EDW). Thus, there was a net total outflow of N5 billion from the primary and secondary segments of government securities market. Apart from the 12-day maturity tenor, even the troubled banks have been making payments to the CBN based on the funds they borrowed, as some of the banks claim that more than half of the money borrowed through the EDW have been paid back. Meanwhile, as anticipated, the Interbank market remained liquid during the week as funds came into the market from the Federation Account Allocation Committee (FAAC), making the inter-bank rates dipped to end the week. Available data showed that the 7-day Nigerian Inter-Bank Offer Rate (NIBOR) closed the week at 6.75 per cent, a 567 basis part decrease from the previous week’s figure of 12.42 per cent. Also, the 90-day NIBOR closed the week at 14.75 per cent, a 188 basis point decrease from the previous week’s figure of 16.63 per cent. According to The FSDH Weekly, it does not expect any maturity in the coming week; however, “We expect the market to be relatively liquid due to the recent injection of funds into the system by the Federation Accounts Allocation Committee (FAAC). At the 91-day treasury bill (TB) auction at total of N16.65 billion worth of securities was offered and sold. The bill was 166.18 per cent subscribed as N27.67 billion worth of bid was received. The bill was issued at a discount rate of 3.999 per cent. A total of N16.65 billion worth of matured bills was repaid into the system resulting in a nil flow from the segment of the market. At the 182-day TBs auction, a total of N30 billion worth of securities was offered and sold, while it was 250.01 per cent subscribed as N75 billion worth of bid was received. The bill was issued at a discount rate of 4.745 per cent. A total of N30 billion worth of matured bills was repaid into the system, resulting in a nil flow from this segment of the market. During this week, there was no inflow into the primary segment of the government securities market. At the foreign exchange auction held on Monday December 14, the CBN offered $200 million, compared to $100 million it offered in the previous week, while it sold a total of $200 million, compared to a total of $100 million it sold in the previous week. On Wednesday, December 16, the CBN offered $300 million, same as what was offered in the previous period, while it sold a total of $300 million, compared to $237.08 million it sold in the previous week. In all, a total of $500 million was offered, compared to $400 million in the previous week, while the CBN sold $500 million, compared to $337.08 million in the previous week. The value of the naira appreciated at the Inter-bank market, while it depreciated at the official market of the foreign exchange market during the week. At the Inter-bank market, the value of the naira appreciated by 90 kobo to close at N149.45/$1, compared to the previous week’s figure of N150.35/US$1, while at the official market the value depreciated by 10kobo to close at N148.10/$1, compared to the previous week’s figure of N148/$1. As at the time of this report, there was no data on the parallel market. It is expected that the closure of the Government Securities Auction and Foreign Exchange markets by the CBN for the year 2009 would bring about little or no activity in the market, thereby keeping the inter-bank rates relatively low, while the official foreign exchange rate will remain at N148.10/$1.