Nigeria: CBN expected to issue €625m worth of Treasury Bills

May 30, 2014

The Central Bank of Nigeria (CBN) last week sold treasury bills worth N200 billion (€905 million) through its Open Market Operations (OMO) instrument.

The Central Bank of Nigeria (CBN) last week sold treasury bills worth N200 billion (€905 million) through its Open Market Operations (OMO) instrument.

This week, despite the planned debit of cash reserve requirement, analysts anticipate that the CBN would issue further OMO bills to mop up the increased liquidity, rein in inflation and curb speculation on the local currency.

According to newspaper Business Day, the government is to issue N137.97 billion (€625 million) worth of treasury bills on Wednesday (4 June).

It is expected to include maturities ranging from three months to one year.

“Liquidity is very tight in the banking system now because of a massive mopping up exercise by the central bank this week and we expect investors to demand higher yields at the next treasury bill auction,” a trader with Guaranty Trust Bank told the news source.ADNFCR-2976-ID-801725274-ADNFCR