By Nse Anthony-Uko
(Sundiata Finance) – The Central Bank of Nigeria (CBN) on Thursday sold N98 billion of treasury securities bringing its Treasury Bills sale to N231 billion within the week in its effort to keep liquidity tight to support the naira.
The local currency remained stable selling at N363 to the dollar at the parallel market.
Traders said the apex bank had earlier in the week auctioned N133.25 billion of Treasury Bills as it continued to support the naira which has been stable for more than two weeks, supported by regular interventions by the CBN, foreign inflows and tight liquidity on the money markets.
On Thursday, the bank sold the 91-day bill at a higher interest rate of 16 per cent plus a 196-day bill at 17.81 per cent. At Wednesday’s auction, it sold N10.25 billion of a 91-day bill at an interest rate of 13.1 per cent, N11 billion of 182-day bills at 15.3 per cent and N112 billion of one-year paper at 15.59 per cent. Total subscriptions were N194.6 billion.
The money market has been short of liquidity for more than a week due to central bank action to mop up naira following the recent maturity of some N86 billion of treasury securities, traders said.
Interbank lending rates remained in double figures, same as last week due the tight liquidity. The currency was quoted at 305.60 on the official and N3 at the Investors and Exporters window, a level around which it has closed for more than three months. It traded at 360 per dollar for investors and at 363 naira on the parallel market.