(Adds detail, quote, background)
LAGOS Oct 18 Nigeria's overnight interbank rate
was quoted at a record high of 150 percent on Tuesday, two days
after lenders placed funds with the central bank to participate
in last Friday's currency forward auction, traders said.
They said few deals were done on Tuesday due to a shortage
of naira on the money market, with lenders loath to place funds
among themselves until the result of Friday's currency auction
On Friday, the central bank held a two-month dollar forward
auction to clear a backlog of demand from airlines,
manufacturers and other companies, as the currency crisis
deepened. It later directed lenders to re-submit bids again on
Monday, traders said.
Traders said rates spiked because lenders were barred from
central bank's repo window before any currency auction and they
had naira funds locked away with the regulator on the day of the
auction to pay for the dollars which they expect to receive in
two months' time.
Central bank was yet to announce result of the auction.
"Most banks are not quoting rates because they are still
waiting for the result of the FX auction," one trader said.
The regulator has been tightening liquidity and intervening
directly with dollar sales to commercial lenders to support the
ailing naira, hit by the fall in oil prices, Nigeria's economic
Overnight rates closed at 128 percent on Monday after they
opened at 100 percent, up from 14 percent on Thursday.
The money market ended with no deals on Friday as lenders
held onto naira to be able to participate at the
(Reporting by Oludare Mayowa and Chijioke Ohuocha; Editing by