CBN to raise N127b in T-bills

The Central Bank of Nigeria (CBN) has promised to retain foreign currency controls because of concerns about slowing growth, Ripples has learnt.
A senior bank official who confirmed this on Wednesday said the apex bank plans to raise N127.07 billion in treasury bills with maturities of three months to one year at an auction on October 7.
The bank said it will issue new 91-day paper worth N25.40 billion, N33.49 billion in 182-day bills and N68.18 billion in one-year debt, using the Dutch Auction System. Results of the auction are expected to be released the following day. Nigeria issues treasury bills twice-monthly to fund the government budget deficit and manage liquidity in the banking system.

Read also: CBN sells T-bills for N53b as naira weakens

Nigeria’s economic growth was 2.35 per cent in the second quarter year on year, compared with 6.54 in the same quarter of 2014. “We are concerned that we are having declining growth,” Moses Tule, the central bank’s monetary policy director told Reuters.
It would be recalled that the CBN on Tuesday sold N53.08 billion worth of treasury bills in a bid to mop up excess liquidity. The naira also weakened on stronger demand from importers. The regulator issued the 275-day open market operations (OMO) bills at 13.50 percent.

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