Nairametrics| The Central Bank of Nigeria will sell N35 billion in short-dated treasury bills tomorrow in its continued efforts to mop up liquidity and prop the Naira. A breakdown of the proposed sale, as disclosed by Reuters, shows that while 5 billion naira of the 190-day open market operations (OMO) bills will be sold, another N30 billion of 330-day paper will also be auctioned by the CBN.
The sale will continue the CBN’s intervention to support the currency by mopping up liquidity in the market, which could lead to speculative demand for foreign exchange. Just last week, the apex bank mopped up around 400 billion naira from the banking system, pushing up interbank rates and leaving some banks scrambling to find cash to cover their positions.
Analysts have continued to express skepticism about the CBN’s continued support of the Naira, but the CBN continues to assure Nigerians that it is ready to continue its interventions as necessary. In addition, the CBN will sell N140 billion in domestic debt as the Debt Management Office (DMO) seeks to fund the country’s N2.36 trillion deficit budget.