Banks Masquerade In Cosmetic Surgery, As Companies Seek Corporate Bonds For Funds

It might have become a case of, not all that glitter is gold, as many banks are shielding their ugliness in all types of cosmetic surgery. Some pretend to be strong by paying interim dividend, while others have doctored balance sheets.
As at June ending, M2 is beginning to show some increase, 4.88 per cent in May to N25.17 trillion, while the average opening position of the banking system fluctuated between N625.09 billion and N6.87 billion.
a cursory look at the interbank interest rates reflected the short positions of banks.
Bismarck Rewane, Chief Executive Officer of Financial Derivatives said, cosmetic balance sheet purchases for half year end pushed rates upwards.
He added that some Tier 1 banks have a tradition of interim dividends, all in a bid to make believe that all is well.
During the month, the naira traded flat at the foreign exchange (forex) market at N362/$, while the Central Bank of Nigeria (CBN) forex intervention in June surpasses May by 53.8 per cent to $2.2 billion, while external reserves pushed lower in June to $47.63 billion.

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