The federal government plans to sell N236.66 billion of short-dated treasury bills (T-bills) at an auction on June 14, the Central Bank of Nigeria (CBN) said on Wednesday.
The apex banking regulating body said it 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.
The National Bureau of Statistics (NBS) has said inflation rate dropped to 17.24 per cent in April, third consecutive month of a decline attributable to exhibiting effects of some easing in already high food and non-food prices, as well as favourable base effects over 2016 prices. Naira in circulation hits the lowest so far in 2017 from N1.99 trillion it was in January.
