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Nigeria Overnight Rate Hits 90 Pct, Nears Record High

Nigeria overnight rate spiked to 90 percent on Tuesday, near record highs, up from 60 percent on Monday, dealers said, two days after the Central … Continue reading Nigeria Overnight Rate Hits 90 Pct, Nears Record High


Financial Markets, christmas

naira-notesNigeria overnight rate spiked to 90 percent on Tuesday, near record highs, up from 60 percent on Monday, dealers said, two days after the Central Bank of Nigeria (CBN) debited lenders to enforce its cash reserve requirements.

Rates have been rising sharply for two days — the overnight lending rate stood at 27 percent on Friday last week, before the CBN bank withdrew the funds.

Rates set a record high of 100 percent in February.

“Everyone scrambling for cash … liquidity is very tight after the central bank recalled N72 billion,” one dealer said.

The open balance with the central bank stood at N26 billion as at Monday, down from around N160 billion last week, traders said.