Nigeria plans to sell N1.05 trillion worth of treasury bills in seven auctions in the third quarter of 2018, according to the Central Bank of Nigeria’s Treasury Bills Issuance Calendar, seen by businessamlive.
Specifically, the CBN would offer N44.86 billion in the three-month papers, N225.08 billion in the six-month bills and N782.47 billion in the one-year notes.
The planned treasury bills auction of N1.05 trillion in Q3 2018 represent an 8.92 percent increase over the N964.47 billion the CBN issued in the 2nd quarter of 2018, and a 13.5 percent decrease from the N1.214 trillion issued in Q1 2017
The bank issues treasury bills twice a month to help the government to finance its budget deficit, curb money supply growth and provide an avenue for lenders to manage liquidity.
Early in May, the CBN released its Monetary, Credit, Foreign Trade and Exchange Policy Guidelines for Fiscal Years 2018/2019, wherein settlement banks were directed to provide a clearing collateral of not less than N15 billion in treasury bills to enable them to perform settlement roles.
Frontpage August 26, 2019