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CBN to issue N195billion treasury bills

By on July 31, 2015

The Central Bank of Nigeria (CBN) plans to sell N195.17 billion worth of 3-month, 6-month and 1-year treasury bills on August 5.

A breakdown of the proposed debt auction according to the central bank include N45.17 billion worth of the 3-month paper, N30 billion of 6-month bill and N120 billion in a 1-year debt, through its Dutch auction System. The results of auction will be published the following day.

Meanwhile, the central bank has disclosed that broad money supply (M2) declined by 0.61 per cent in June 2015, below the level at end-December 2014. The modest decline in money supply reflected decreases in the net foreign assets of 16.15 per cent and other assets (net) of 21.40 per cent. Net domestic credit (NDC), however, grew by 13.45 per cent. Annualised, NDC grew by 27.90 per cent over the end-December 2014 level but essentially within the provisional benchmark of 29.30 per cent for fiscal 2015.

“The growth in aggregate credit was attributable to growth in federal government borrowing, which reached 40.81 per cent in June 2015. During the period under review, money market interest rates were relatively volatile, owing to fluctuations in banking system liquidity.
“Average inter-bank call and OBB rates opened at 6.55 and 6.45 per cent on 1st July, 2015 and closed at 26.51 and 21.00 per cent, respectively, on July 23, 2015. Average inter-bank call and OBB rates for the period were 9.83 and 10.23 per cent, respectively,” the central bank stated.