CBN Sells Record N1.3tr Treasury Bonds to Strengthen Naira

The Central Bank of Nigeria has sold a record N1.3 billion worth of Treasury Bills, specifically targeting foreign investors.

The aim is to increase the flow of foreign exchange (forex) into Nigeria and strengthen the value of the Naira.

Current Treasury Bills, which are a safe way for investors to obtain a return on their money, offer attractive interest rates. The CBN hopes to attract foreign investors to buy these Treasury bills.

This would inject much-needed dollars into the economy, which would help stabilize and potentially reduce the exchange rate.

The Nation reported that investors submitted proposals totaling N1.5 trillion, exceeding the N312.9 billion offered by the CBN. The apex bank reportedly granted N1.3 trillion worth of Treasury bills at an interest rate of 21.49 percent.

These resources will be used by the CBN to intervene in the foreign exchange market, buying dollars and selling Naira. This increased supply of dollars is expected to help reduce the exchange rate from its current high of about N1,600 to one dollar.

Source: www.lindaikejisblog.com