Nigeria naira, bond yields up

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LAGOS - Nigeria's naira firmed 1.5 percent against the US dollar and bond yields climbed 0.5 percent on Wednesday, a day after the central bank took measures to stabilise the weak local currency, which is adding to inflation pressure.

The central bank left its benchmark interest rate on hold at 12 percent on Tuesday, as expected, but took surprise measures to tighten liquidity.

It raised cash reserve requirement for lenders in Africa's second biggest economy to 12 percent from 8 percent and reduced net open foreign exchange positions to one percent from three percent to support the naira.

The naira opened for trade on Wednesday at 158.15 naira to the greenback, stronger than 160.70 it closed on Tuesday before the announcement. Financial markets were closed on Tuesday when the rate decision was announced. - Reuters

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