Overnight interbank rate falls to 20% after forex auction

Nigeria’s overnight interbank rate crashed on Wednesday to around 20 percent from 150 per cent after the Central Bank of Nigeria (CBN) sold less hard currency than expected at a special auction, traders said.

According to Reuters’ report monitored by Business247 News Online, “The Central Bank f Nigeria has released the result of the auction, but the amount sold fell short of market expectations,” one dealer said, without giving details.

The interbank rate fell after the auction as banks had now more surplus liquidity from funds not used to buy hard currency, dealers said.