Apex bank raises benchmark rate to 14 percent

Nigeria's central bank raised its benchmark interest rate by a surprise 200 basis points to 14 percent on Tuesday and maintained its existing cash reserve ratios for commercial banks in a bid to stabilise the naira.

In a Reuters poll, the median forecast of 13 analysts taken July 18-21 predicted that Nigeria would raise interest rates by 100 basis points to 13 percent.

The naira continued a downward slope at the interbank segment of the market, hitting a spot rate of N309.84 to the dollar from about N300 posted on Friday.

Currency traders continued to rain counter accusations against dollar scarcity as explanation for the week performance of the Nigerian currency.