The Central Bank of Nigeria (CBN) hinted yesterday that it plans to raise N212.85 billion through Treasury Bills next week as the naira gained strength at the inter-bank foreign exchange market despite the volatility at the parallel market.
The apex bank said it plans to sell N45.85 billion worth of the 91-day bills, N62 billion of the 182-day paper and N105 billion of the 1-year debt on Wednesday,
August 31, 2016 with payment for the purchase effected on Thursday, September 1, 2016.
Nigeria, Africa’s top crude producer, issues treasury bills to raise cash to fund the government budget deficit, help manage banking system liquidity and curb rising inflation.
Meanwhile, the naira soared against the dollar at the inter-bank market, yesterday as the parallel market remained volatile.
The Nigerian currency traded at N314.95 against the dollar as against N338.75 it recorded at the transaction on Thursday.
But at the parallel market, the naira traded at N412 to a dollar, more than N407 it recorded on Thursday, and N530 to Pound Sterling and N455 against Euro, rising from N425 and N455, respectively on Thursday.
Also, at the Bureau De Change (BDC) segment of the market, the naira exchange rate rose at N407, N520 and N450, more than N407, N525 and N450 it posted on Thursday.
Traders at the market explained that the market had remained unstable, suggesting that the directives and counter-directives of the Central Bank of Nigeria (CBN) on foreign exchange sale was affecting liquidity flow.