April 24, 2020 / 3:01 PM / a month ago

Nigeria levies $3.9 bln on banks to soak up liquidity, support naira

ABUJA, April 24 (Reuters) - Nigeria’s central bank has collected 1.4 trillion naira ($3.9 bln) from banks with excess cash holdings as part of measures to support the naira currency, banking sources told Reuters.

The levy helped banks meet a special cash ratio requirement imposed to help soak up liquidity from the banking system.

Money market rates spiked to between 10% and 15% following after the money was debited, from just 2% the previous session.

Reporting By Chijioke Ohuocha; Editing by Catherine Evans

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