Nigeria: CBN to Mop Up N1.2 Trillion in 12 Weeks

Jun 12, 2017 | Vanguard; All Africa

The Central Bank of Nigeria (CBN) will, this week, commence plans to mop up N1.23 trillion in the next 12 weeks. The apex bank disclosed this through its third quarterly Treasury Bills Issuance programme released on Friday.

The programme revealed that the CBN will issue treasury bills (bills) worth N1.23 trillion from Wednesday, June 15 to Thursday, August 31. This, according to the apex bank, will bring the total outstanding bills to N3.7 trillion by the end of August. The bills to be issued, which also represent the amount of bills that will mature during this period comprise N226.64 billion worth of 91 days bills; N311.3 billion worth of 182 days bills; and N698.6 billion 364 days bills. Further analysis revealed that the apex bank will issue N369.8 billion in the last two weeks of June comprising N67.1 billion worth of 91 days bills, N78.1 billion worth of 182 days bills, and N224.6 billion worth of 364 days bills. Bills of the same tenure and amount will mature during the period. In July the apex bank will issue N382 billion worth of bills comprising N71.8 billion worth of 91 days bills, N61.2 billion worth of 182 days bills, and N249 billion worth of 364 days bills. In August the CBN plans to issue N484.6 billion worth of bills comprising N87.6 billion worth of 91 days, N172 billion worth of 182 days bills, and N225 billion worth of 364 days bills. Cost of funds to fall this week Cost of funds in the interbank money market is expected to fall this week in response to liquidity inflow through matured bills. Last week, cost of funds shot up by 800 basis points between Monday and Thursday, as outflow for purchase of dollars from the CBN occasioned intense scarcity of funds. Read more on All Africa. Source: All Africa