Nigeria interbank rates fall on excess liquidity

Nigerian interbank lending rates fell 1.5 percentage points on Friday to 9.25 percent, compared with 10.75 percent last week, as treasury bills matured and cash calls went out to joint oil- production partners, increasing market liquidity.Traders said about 234 billion naira ($1.25 billion) in matured treasury bills was retired by the central bank on Thursday and an undisclosed amount was paid to oil-production joint venture partners.Banks' cash balance with the central bank rose to 393 billion naira on Thursday from 377 billion naira last Friday....

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Nigeria's foreign investors hoping for post-election naira devaluation

Tumbling oil prices and political chaos have eroded Nigeria's lure for foreign investors, but they are likely to venture back if authorities will allow what some say is a much-needed currency devaluation.     The price of oil -- the source of 70 percent of Nigeria government revenue -- has fallen 60 percent since last June, pushing stocks down by a third over the same period. Local bond yields are 2 percentage points higher.     Adding to the pressure are almost daily attacks by the Islamist militants Boko Haram and political...

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Nigeria central bank governor rules out naira float

Nigerian central bank governor Godwin Emefiele said on Tuesday he would not allow the naira to float freely because it would lead to "major" depreciation of the currency.A weaker currency would affect the purchasing power and economy of Africa's most populous nation, he told a business conference in Lagos.The naira has been under pressure from a fall in the price of oil, Nigeria's main export. This forced the central bank to devalue the currency by 8 percent in November to save its foreign reserves, after several months of defending it.The naira...

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Nigerian overnight rate rises as central bank mops up liquidity

Nigerian interbank lending rates climbed 2 percentage points to an average of 10.75 percent this week from 8.75 percent last week, after the central bank moved to support the ailing local currency by draining excess cash from the market.Traders said the cost of funds has steadily risen as the central bank sold Open Market Operation (OMO) bills this week. That reduced liquidity and helped to shore up the naira, which closed at a record low of 190.60 to the dollar on Friday.Maturing treasury bills repaid about 144 billion naira on Thursday, but the...

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Nigerian central bank increases forex trading limits for lenders

Nigeria's central bank increased the foreign currency trading position for commercial banks on Thursday to 0.5 percent of their capital base from 0.1 percent, in a move to shore up interbank dollar liquidity.Liquidity conditions have deteriorated as the naira has slumped to record lows because dollar inflows from foreign investment and other sources have dried up.The central bank is having to intervene and sell dollars into the market, but that is burning up its foreign reserves.According to a circular seen by Reuters, the central bank said funds...

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Naira hits record lows as another Nigeria devaluation looms

Nigeria's naira hit record lows against the dollar on Monday before central bank decisions that analysts say may include the second currency devaluation in two months for Africa's top oil producer.The naira, which has been hammered by the collapse in oil prices, fell 3.6 percent to a record low of 191.85 before recovering some ground after the central bank, two domestic banks and an energy firm sold dollars, according to dealers.However, it still booked its weakest close on record at 187.10 to the dollar, suggesting commercial banks in Africa's...

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