Overnight interbank rate rises after banks bid for $500m forex

The overnight inter-bank rates, which is the rates at which banks lend to each other rose to 132.00 percent on Tuesday after the banks sent bids for the CBN’s $500 million forex intervention. The rise is drastic compared to 21.14 percent the previous day.

Also, the Open-Buy-Back increased from 20.50 percent on Monday to N128.33 percent on Tuesday. One of the authorized dealers told BusinessDay that all the lenders bided for the wholesale offer, adding that the amount sold to them would be more than the initial $500 million.