Aug 10 (Lagos) - Central Bank of Nigeria sold 172.1 billion naira ($1.1 billion) in treasury bills, more than expected, and increased the yield it offered on the short-dated paper to mop up liquidity to support the currency.
The auction saw huge demand specially from overseas bidders who had stayed away during the previous auction. The higher yeild (coupon rates) acted as a catalyst for higher demand. This will also help in improving the Naira exchange rate at least for the short term. As the inflation starts rising for the rest of the year, the CBN has acted prudently in arresting Naira decline.
The details of the sale are as follows.
N 32.06 billion of 91 day ( 3 month) expiration at a coupon of 15.04%, 1.1% higher than the last auction of July 25.
N 50 billion of 182 day (6 month) expiration at a coupon of 16.56%, 1.62% higher than the July auction.
N 90 billion of 364 day (1 year) expiration at the coupon of 18.17%, 3.20% higher than the july auction.
reporting for easykobo.com on Friday, August 10 2012 from Lagos, Nigeria
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