• Friday, December 01, 2023
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Nigeria’s overnight rate jumps to 60 percent as CBN props up naira

Brewing up a mess in Nigeria with a controversial Naira rebrand

Nigeria’s overnight interbank rate jumped to 60 percent on Monday, up 440 basis point from Friday’s close after the Central Bank of Nigeria (CBN) tightened naira liquidity to support the ailing currency, dealers said.

The CBN soaked up liquidity through a N30 billion open market operation on Monday. It withdrew N167 billion ($862m) last week to enforce a cash reserve requirement for lenders.

Read also: Nigeria delays elections over security fears

The naira hit record low of 196.15 to the dollar on Monday, after the country delayed its presidential election by six weeks, citing security concerns due to an Islamist insurgency in the north.

Banks’ balance with the central bank opened at N64.6 billion, compared with N393 billion last week.