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LAGOS Oct 17 Nigeria's overnight interbank
lending rate soared to a record high of 128 percent on Monday on
naira cash shortages after the lenders funded their account with
the central bank to participate in last Friday's currency
forward auction, traders said.
Overnight rates opened at 100 percent on Monday, traders
said, after the money market ended on Friday with no deals as
commercial lenders held onto naira to be able to participate in
Overnight money traded at 14 percent on Thursday.
The central bank 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 mainstay.
The bank on Friday held a two-month dollar forward auction
to clear a backlog of demand from airlines, manufacturers and
other companies, as the currency crisis deepened.
However, it debited customers' naira accounts on the day of
the auction but will deliver the dollars in two months' time,
traders said, adding that the move had soaked up liquidity from
the money markets.
The central bank intervened again on Monday with dollar
sales to support the naira, which ended at 305.50 per dollar,
(Reporting by Oludare Mayowa and Chijioke Ohuocha; Editing by