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[ MAIN ]BANKING & FINANCENEWS

CBN to Sell Less Treasury Bills this Quarter

Indications have shown that the Central Bank of Nigeria (CBN) may commence the gradual easing of monetary policy as the regulator has relaxed its aggressive mop up of liquidity this quarter.

Investigations revealed that the apex bank would sell less treasury bills this quarter, compared to the first quarter of the year.
Specifically, the CBN plans to issue to total of N740.629 billion treasury bills this quarter.

The amount represented a reduction by 10.4 per cent, compared to a total of N826.310 billion issued in the first quarter.

The treasury bills are monetary policy instrument used to control the volume of money supply in the economy.

As a result of its restrictive monetary policy, the apex bank had intensified its mop up of excess liquidity in the system by sale of treasury bills at the Primary Market Auction (PMA).

The funds realised from the sale of the fixed income instrument are also used to fund fiscal deficit as well as shortfalls in federal government’s revenue.

 

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