The Central Bank of Nigeria (CBN) is expected to debit commercial banks around N1.2 trillion to cover hard currency purchases, thereby triggering inter-bank overnight rate to 60 per cent from 18 per cent.
The deduction is coming on the heels of the special secondary market intervention sales (SMIS), which were made up of $3.5 billion in forward sales and about $530 million at the interbank market, were targeted at clearin g up the huge backlog of demands that have remained unmet.
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However, the apex bank intervened for a second day on Tuesday to sell US dollars into the interbank market after floating the naira, which failed to attract trading be- tween banks due to liquidity concerns.
A total of $100 million, sold between N282 and N285, was done around 1200 GMT, as intervention from the central bank. The inter-bank market quoted total traded volumes of $142 million.