CBN Sells N310b Treasury Bills

one yearThe Central Bank of Nigeria (CBN) CBN Headquarters, Abuja
  • CBN Sells N310b Treasury Bills

The Central Bank of Nigeria (CBN) has raised N310.14 billion (about $985 million) at an auction of treasury bills at yields lower than the inflation rate.

The bank sold N222 billion of one-year treasury bills at a yield of 18.49 per cent, lower than inflation at 18.72 per cent and compared with 18.44 per cent at a previous auction.

A total of N62 billion of the six-month bill was sold at 17.20 per cent, slightly higher than 17.15 per cent at the previous sale. A total of N26.14 billion of three-month paper was sold at 13.65 per cent against 13.69 per cent previously.

Subscriptions stood at N312.44 billion against N415.05 billion at the previous auction. The CBN issues treasury bills twice a month to finance the government’s budget deficit, help manage commercial lenders’ liquidity and curb rising inflation.

Meanwhile, the CBN has said it will clear backlog of dollar demand for importers.

It said yesterday it will sell dollars via a book-building process to clear a backlog of dollar demand for companies importing machinery, airline equipment and petroleum products.

Companies would be required to pay the naira equivalent for their dollar bids on the spot market on Thursday, while the dollars will be delivered in two months’ time, the central bank told commercial banks. It did not say how much it would offer at the sale.

The naira was quoted at 315 on the interbank market on Thursday and had traded only $79,000. On the black market the naira was quoted at 455 per dollar.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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