CBN mops up N130bn from circulation

As part of measures to control money supply in the economy, Central Bank of Nigeria (CBN), last Thursday, sold N130 billion ($840 million) in 91 182 and 364-day treasury bill,A breakdown showed that the banking watchdog sold N50 billion each in the 182-day and 364-day instruments at marginal rates of 8.41 per cent and 9.09 per cent  respectively, and N30 billion in the 91-day bills at 6.8 per cent.The yield on the 182-day paper was higher than at the previous auction last month, when it was offered at 8.25 per cent. The yields on the 364-day and 91-day were down slightly from 9.10 per cent and 6.85 per cent previously.Total subscription stood at N310.79 billion compared to 364.6 billion naira last month, but the regulator stuck to its initial offer. Dealers said N70 billion worth of papers matured this week, which means only N60 billion actually left the system for the apex banks vaults.Nigeria issues treasury bills regularly as part of measures to curb inflation, control money supply and help lenders manage their liquidity. The central bank wants to get headline inflation, which stood at 12.1 per cent year-on-year in January and has been in double digits since 2009, back down below 10 per cent.
Click here to read full news..