Nigerian Banks Halt Lending To Each Other
When the head of the central bank utters the two words “don’t panic” you know the economy, currency, and financial system is in trouble…and that’s just what Nigerian central bank Governor Godwin Emefiele just did.
Following government intervention to sweep cash from local to central accounts, banks have panicked. As Reuters reports, overnight interbank lending rates spiked to 200%, which Emefiele opined was “a momentary action… just sentiment,” but the interbank Naira market was paralyzed for a third day on Thursday, with banks unwilling to lend to each other, even when rates fell back to 20-30%
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