Nigeria devalues naira, raises rates

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