Business
CBN To Sell N2.17trn Govt Securities
The Central Bank of Ni
geria (CBN) is set to mop up N2.17 trillion through the sale of government securities.
This represents 170 percent increase compared to the N1.2 trillion withdrawn from the economy through the sale of government securities from December to the first week of this month.
This was released by the apex bank last week for the second quarter of the year in the sale of treasury bills.
The programme, which would run from March 19th to June 4th, revealed that the CBN would sell N945.51 billion worth of secondary market treasury bills and N995.49 billion value of newly issued primary market treasury bills.
Analysis showed that the apex bank would sell N215.02 billion worth of OMO bills and N265 billion worth of primary market bills from March 19th to March 26th.
In April the CBN plans to sell N353.09 billion worth OMO bills and N353.09 worth of primary market bills.
CBN would also in April sell N261.55 billion worth of OMO bills and N261.55 worth of primary market bills.
On June 4th, the CBN would sell N115.85 billion worth of OMO bill and N115.85 billion worth of primary market bills.
Even though the huge treasury bills sales would allow the CBN maintain the amount of money in the banking system, it will reduce the supply of money available for lending in the economy, bringing up the high interest rate regime in the country.