Central Bank of Nigeria has disclosed today that the Federal Government plans on borrowing N218.89 billion ($1.1 billion) through short-dated Treasury bills on April 7, to help reduce inflation and manage liquidity.
The Apex bank have already stated last month, it will borrow as much as N1.07 trillion through the issuance of treasury bills in the second quarter (Q2) of the year.
The CBN’s Monetary Policy Committee had last Tuesday raised the benchmark interest rate to 12 per cent from 11 per cent, having cut rates only four months ago by two percentage points, and lifted the Cash Reserve Ratio for Deposit Money Banks to 22.5 per cent from 20 per cent.
Last Wednesday, CBN borrowed N114.97bn ($579.05m) through three-month to one-year treasury bills at higher yields.Total subscription fell to N323.47bn from N409.84bn at the previous auction.
This story originally appeared here Punch