Nigerian overnight lending rates climbed to near record highs on Friday after the central bank sold Treasury bills to mop up liquidity and enforced a cash reserve requirement for lenders, dealers said.
Amid a squeeze on the naira, the rate commercial banks charge other banks for borrowing on the interbank market jumped to 95 percent, from 20 percent on Thursday.
Overnight rates climbed to a record high of 100 percent on Tuesday after the central bank soaked up liquidity to support the naira currency, which fell through the psychological 200 mark for the first time this week.
The central bank sold 115 billion naira ($575 million) of debt in a bid to tighten liquidity in support of the local currency by draining cash and pushing up lending rates.
Traders said the state-owned energy company, NNPC, also recalled a portion of its deposits with banks, putting further pressure on liquidity.
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