Nigeria overnight lending rate doubles to 20 pct after CBN action

 

Trading on Nigeria's intern bank market almost doubled on Wednesday, after trading resumed a day after the central bank hiked the cash reserve ratio (CRR) for commercial banks to hold deposits from individuals and businesses.

Dealers said commercial lenders were scrambling for cash in anticipation of the central bank enforcing the CRR on Wednesday, so interbank rates rose sharply from 10.25 percent the previous day.

Initially, the overnight market was not giving quotes on Wednesday because they were waiting for information from the central bank on when the CRR will be debited.