Nigeria’s Central Bank raised interest rates by a significant 400 bps to 22.75% to combat runaway inflation and stabilize the naira, which has lost about 70% of its value against the USD since June of the previous year. The adjustments include a hike in the cash reserve ratio to 45% from 32.5% and changes to lending and borrowing rates for banks, indicating a tightening of monetary policy to control liquidity and support the currency, despite the central bank’s view that the naira remains undervalued.