Dear Promo Blog viewers, The central bank of Nigeria (CBN) has announced plans to issue a total of N137.97 Billion treasury bills this Wednesday 6th June 2012. This is in line with its restrictive monetary policy stance. The bills which are to vary from 3 – months to 1 year maturities would be sold at the apex banks’ regular bi-monthly debt auction. Specifically, the CBN Plans to issue N32.97 Billion naira in 91-days bills, N45 Billion in 182-days bills and N60 Billion in 364-day bills.
Auctioning treasury bills helps in reducing of volume of money supply in the system, because the liquidity management offices accepts money in return for purchase of securities and keeps the money out of circulation.
The regulator issues the bill with the aim of reducing money supply as well as to control inflationary pressure in the country. Inflation rate had increased significantly to 12.9 per cent in April.
THISDAY NEWSPAPER 4TH June 2012 Page 28.