Nige­ria de­val­ues naira, raises rates

The Star Early Edition - - BUSINESS REPORT -

NIGE­RIA’S cen­tral bank de­val­ued the naira by 8 per­cent and raised in­ter­est rates sharply yes­ter­day as it sought to stem losses to its for­eign re­serves from de­fend­ing the cur­rency against weaker oil prices. The bank moved the naira’s tar­get band to 160-176 (R10-R12) to the dol­lar, com­pared with 150-160 naira pre­vi­ously, owing to pro­longed naira weak­ness and high dol­lar de­mand. The bank also raised its bench­mark in­ter­est rate by a hefty 100 ba­sis points to 13 per­cent. Gov­er­nor God­win Eme­fiele said ef­forts to prop up the naira had led to “dwin­dling for­eign re­serves”. – Reuters

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