Overnight Rate Takes a Beating from CBN Intervention from 100% to 12%

Nigeria’s overnight interbank lending rate fell to 12 p cent yesterday from the previous day’s record high of 100 per cent, after the Central Bank of Nigeria (CBN) refunded Naira to dealers who were unsuccessful at its Dollar auction.
Dealers said a N30 billion budget allocation to some government agencies was also credited through the banking system, boosting liquidity. Banks’ balance with the CBN stood at a credit of N123 billion yesterday, from N52.3 billion in credit previous day. The CBN has been tightening liquidity and intervening directly with Dollar sales to commercial lenders to support the ailing Naira, hit by falling oil prices. 

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