Nigeria’s interbank lending rate rises to 16 per cent

Central bank of Nigeria building

Nigeria’s overnight interbank lending rate, Friday, climbed to 16 per cent from about 13 per cent at the end of last week.

This is coming after the Central Bank of Nigeria, CBN, debited commercial banks’ accounts for dollar purchases and also issued
treasury bills to mop up liquidity.

Reuters reports that the Central Bank sold dollars twice this week to
clear a backlog of demand for companies and private individuals to
ease pressure on the naira.

Traders said the regular forex auctions and the treasury bill sales drained liquidity.

The money market opened with a cash deficit of about N2.3 billion‎ on Friday, compared with a deficit of N45.64 billion last week.

The Central Bank on Friday offered to sell about N40 billion in treasury bills to further tighten liquidity.

“The tight liquidity is designed to curb demand for dollar,” a market operator said.

There are speculations that the money market rates may continue to rise next week as the Central Bank increases the frequency of its
dollar sale.


Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD: Revealed!!! The Only Way Left of Getting an Extra Large Manhood and also Last Up to 38Mins+. Get the Insider Secret Here

TEXT AD: New Discovery Reveals 3 Secret Fruits that Help Men Last 25mins in Bed and Increase Manhood Size. Click Here!

All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.