The Central Bank of Nigeria (CBN) is scheduled to auction ₦216.09 billion in treasury bills on Thursday, according to recent data released by the bank.
Details of the Auction
The breakdown of the treasury bills to be auctioned is as follows:
– ₦16.59 billion for the 91-day tenor
– ₦51.34 billion for the 182-day tenor
– ₦148.15 billion for the 364-day tenor
Recent Auction Performance
At the last treasury bill auction, the one-year bill yielded a record-high return of 28.36%, driven by an interest rate increase to 26.75% in July 2024.
This yield represents a 0.86% rise from the previous auction’s 26.96% and is also higher than the 26.01% yield seen since March.
Future Issuance Plans
The CBN has announced plans to issue ₦1.56 trillion in treasury bills during the third quarter of 2024, aligning with the amount scheduled to mature between June and August this year. This issuance amount for Q3 2024 is 4.87% lower than the ₦1.56 trillion issued in Q2 2024.
Purpose of Treasury Bills
Treasury bills are government-backed securities issued by the CBN to address short-term capital requirements and manage the liquidity in the financial system.
CBN Sells $148 Million in Forex to 29 Authorized Dealers
The Central Bank of Nigeria (CBN) announced that it sold $148 million in foreign exchange to 29 authorized dealer banks over a two-day period on July 22 and 23, 2024.
This information was disclosed in a statement on the CBN’s official website. The foreign exchange was sold on the Nigerian Foreign Exchange Market (NFEM) at exchange rates of ₦1,470 and ₦1,510 per dollar, respectively.
The bank specified that the sales were made to 29 authorized dealer banks at exchange rates of ₦1,470 and ₦1,510 per dollar. Additionally, the CBN purchased $2 million from one authorized dealer bank at a rate of ₦1,505 per dollar.
The transactions for July 22, 2024, were settled on a T+0 basis, while those for July 23, 2024, followed the same T+0 settlement timeline.
