The Central Bank of Nigeria (CBN) has announced its plan to auction N236.66 billion of short-dated Treasury Bills on June 14.
The CBN plans to sell N39 billion of three-month debt, N23.02 billion of six-month bills and N174.64 billion of one-year notes, using a Dutch auction system. Payment will be due the day after the auction.
The CBN issues T-bills twice a month to finance a budget deficit, help manage commercial lenders’ liquidity and curb rising inflation. However, the CBN has revealed that Naira in circulation dropped by 3.9 per cent in May to N1.89 trillion from N1.97 trillion in April.
This is in line with CBN motives to mop-up excess liquidity from the banking system that has resulted in drop in inflation rate.
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