Nigeria’s Overnight Interbank Rate Falls To 20%

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naira-notes

By Modupe Gbadeyanka

A special foreign exchange auction on Wednesday fell short of expectation, making Nigeria’s overnight interbank rate to crash badly.

Business Post correspondent reports that the rate slumped to around 20 percent from 150 percent.

This was after the Central Bank of Nigeria (CBN) traded less hard currency than expected at the special auction, which was expected to yield a good result

It was gathered that Dollars were exchanged at a range of 310 to 350 per Dollar by the CBN.

According to our correspondent, banks now have more surplus liquidity from funds not used to purchase hard currency.

They had been required to fund their accounts to partake in the auction, which consequently allowed the cost of borrowing to rise.

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