- Nigeria’s interbank overnight lending rate spiked to 80% today following a drop in liquidity
- The NNPC withdrew more cash from the banking system today in line with the CBN monetary policy instructions
- Most banks were hit hard and had no choice but to borrow from other banks attracting punitive interest rates.
- Today increase is an additional 20% from the 60% closed last week
- The cost of borrowing among banks has oscillated between a high of 70 percent and a low of 14 percent since last month, when the central bank hiked the cash reserve requirement (CRR)on private sector deposits with commercial lenders to 20 percent from 15 percent.
- The Interbank rate is the rate at which banks lend to each over night. The 80% is per annum so you will have to divide that by 365 to get how much interest rate the banks will pay per day.
- Press
![[The Nigerian Economy Daily] FG has approved the closure of five foreign missions and embassies](https://nairametrics.com/wp-content/uploads/2017/05/nigerian-economy-today-1.jpg)
