The Central Bank of Nigeria will on Wednesday sell Treasury Bills worth N212.85 billion.
The sale is part of the Federal Government’s plan to raise money to fund the 2016 budget.
On Friday the apex bank also mopped up the sum of N71.6 billion through the Open Market Operation (OMO).
According to the CBN, the Treasury bills on offer consist of papers maturing between 91 days and one year. In a breakdown, the bank said it would sell N45.85 billion worth of the 91-day bills, N62 billion of the 182-day paper and N105 billion of the one year debt.
The Naira interbank lending rate closed around the 20 per cent level on Friday, a range it has traded all week due to low liquidity and the withdrawal through OMO.
However, traders are of the opinion that the interbank rates should trade at the 16 per cent level by next week once July’s FAAC allocations enter the banking system.
“The market traded in anticipation of the release of the July budget allocations to states and local government, which hopefully should hit the system by Monday,” one dealer said.
Dolapo is a writer and journalist who works with YNaija. He has interests in Christianity, politics and sports.
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